The International Monetary Fund has indicated that Bulgaria ’s flat tax system may not be sufficient to sustain growing demand for quality public services. In a medium-term perspective, the IMF suggests that higher revenues could be achieved by raising tax rates on personal and corporate income and transitioning to a progressive taxation model. Economist Rumen Galabinov also predicts that Bulgaria could adopt a new type of taxation within the next decade. He notes that 21 of the 27 European