The Ministry of Finance is currently developing legislative changes needed to create a new mega-structure that will merge the National Revenue Agency (NRA) and the Customs Agency. According to the plan, the legislation should be finalized by the end of the year. In the meantime, steps will be taken to ensure the continuity of services provided by the future unified revenue agency, as well as the integration and training of the administration.

The second phase of the Ministry’s plan, expected to begin after January 1, 2025, involves the gradual integration of specialized administrations, including the merging of information and network systems. This information was revealed in a response by Finance Minister Lyudmila Petkova to a parliamentary inquiry.

These are the first official deadlines announced by the Ministry of Finance regarding the proposal to create a unified revenue agency. The idea is not new, but it was revived by former Finance Minister Asen Vassilev, who argued that unified revenue agencies are more effective in collecting revenue, citing examples from several EU countries with similar models.

While initial discussions focused on merging the two structures, Petkova’s response suggests that the Customs Agency will be integrated into the NRA, implying that the current NRA director, Rumen Spetsov, might lead the new structure, assuming he remains in his position under future governments.

Talk of merging the NRA and Customs first arose during the administration of Plamen Oresharski with Finance Minister Petar Chobanov from the DPS. The second cabinet of Boyko Borisov, with Finance Minister Vladislav Goranov, also prioritized the merger, and work began, but was later abandoned when customs revenue collection improved.

As before, the idea resurfaces at a time of decreased revenue collection by the agencies. Last year, the Ministry of Finance fell short by approximately BGN 1.2 billion in planned revenues, largely due to issues with VAT collection on imports, a responsibility of the Customs Agency. Ministry statistics as of the end of June this year show a lag in tax revenues, with first-half performance at 44.9%, and Minister Petkova has indicated that VAT revenue shortfalls may persist this year.

So, how is the merger progressing? Currently, a review and analysis of the specialized administrations in both agencies are underway to identify overlaps and opportunities for process integration. The future development of the unified revenue agency’s functions, along with the documentation that will be used post-merger, is also under discussion. Information assets and networks are being analyzed, with plans being developed for information migration to ensure network and information security.