According to the Focus news agency, Stanishev told a round table of industrialists that progress in this area has been such that the World Bank now ranks Bulgaria the number one tax reformer globally, and in the top ten in terms of other major business-related reforms - the only EU country to figure in the top ten of this World Bank list.

“Better, clearer and more predictable rules are needed for doing business and for the participation of the employers’ organisations in this process, including European companies, who have invested in the country,” the Prime Minister was reported to have observed.

Meanwhile, Economy Minister, Petar Dimitrov, has hinted that the government may improve its tax system further by lowering the rate of VAT by 2% to 18%.

According to Focus, Dimitrov has said that if economic conditions remain unchanged for the remainder of the year, a 2% VAT cut could be brought about in January 2009.

However, his comments come only days after Finance Minister, Plamen Oresharski, spoke out to deny rumours that the country's government is planning to cut rates of VAT or excise duties in order to ease inflation.

Oresharski has argued that this move would have little impact on inflation and erode a vital source of tax revenues. The government has also been warned by analysts that consumers are unlikely to feel the immediate benefits of a VAT cut, and that it could be a risky move politically.