The digital and communication industry in Bulgaria presented 11 specific proposals for economic measures to the government

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The digital and communication industry in Bulgaria presented 11 specific proposals for economic measures to the government

 The branch organizations are ready to provide free communication consultations and assistance during the state of emergency

 

 The digital and communication industry in our country has made specific proposals to the government for economic measures that could support directly affected businesses, including those of communication and marketing agencies, as well as ensure the financial stability of the whole country.

Interactive Advertising Bureau Bulgaria, the Bulgarian Association of PR Agencies, the Bulgarian Association of Communication Agencies, the Bulgarian Association of Professionals in Marketing Research and Public Opinion Research and the Association of Rental Companies in Bulgaria proposed 11 specific measures to the Prime Minister of the Republic of Bulgaria Boyko Borisov, Deputy Prime Minister Tomislav Donchev, line ministers Denitsa Sacheva, Emil Karanikolov and Vladislav Goranov and the Chairman of the 44th National Assembly Tsveta Karayancheva, through which to reduce ie negative effects on the industry and to enable the agencies to keep their teams:

1. Postponement of the payment of direct taxes, local taxes and fees and insurances for the time of the state of emergency and in the following three (3) months after its cancellation.

2. Refund of the value added tax due within fourteen (14) days.

3. Immediate payment of the accumulated liabilities before the declaration of the state of emergency of the state and the municipalities to the business.

4. Reduction of the interest rate in case of delayed payment of the tax liability of regular payers by the end of 2020.

5. Introduction of a regime in which the employer has the right to provide its employees with up to fifteen (15) days of unpaid leave per month during the next four (4) months from the introduction of the state of emergency in order to postpone the dismissal of employees as extreme measure. This period of unpaid leave for employees of communication and marketing services agencies to be considered seniority, even if it is unpaid leave. This will reduce the layoffs of people who would fall entirely as a financial burden on the state.

6. With regard to delayed and due payments to budgetary organizations, providing immediate financing (regardless of whether it is in the budget or not) for unpaid but due and undisputed payments to budgetary organizations or to ensure the purchase of these liabilities by the Bulgarian Bank for development.

7. Fast and easy procedures for long-term loans with a term of up to 30 years, which will guarantee the liquidity of SMEs and which will reduce intercompany indebtedness.

8. Criteria for granting interest-free loans to provide working capital guaranteed by Bulgarian Bank for Development should be the results of the second and subsequent quarters of 2020, compared to 2019, and not those for the first quarter, when there is no state of emergency.

9. Facilitation of the procedures for access to the Unemployment Fund in case of temporary interruption of work for companies from all sectors, including self-insured persons, covering 60% of the income for a period of maximum 6 months, after the second month the employer’s obligation expires to pay 40% of the income. The amount paid may not be less than the minimum wage for the country. Provide sufficient funds for all affected companies.

10. EU funds intended to increase the competitiveness of enterprises should be used to support companies affected by the Covid-19 emergency. Decisions on the allocation of these funds should be taken in consultation with business representatives and in view of their specific needs.

11. Financial assistance to ensure cleaning, disinfection and safety at the workplace by covering 50% of the costs incurred since the beginning of March.

 The union of the branch organizations in the communication and marketing sector points out that after a survey among members of the Bulgarian Association of Communication Agencies in the first days after the introduction of the state of emergency and repeated after two weeks, some agencies saw a reduction in workload to 90 percent. A decline is observed in all types of services provided by the industry realized as one of the most affected by the organization of events and promotions at points of sale. In its proposal, the business points out a number of consequences of the imposed ones restrictive measures that deal a serious blow to industry, create preconditions for layoffs of hundreds of employees and put the liquidity of companies in great weight.

 

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