Bulgaria's pension insurance companies have suggested that voluntary pension plan contributions and life insurance contributions become tax deductible as of 2005, said Nikola Abadjiev, chairman of the Bulgarian Association of Supplementary Pension Security Companies. The account holders should incur tax upon the closure of their account or upon pension payouts, Abadjiev said. At present, the tax deductible pension plan contributions are capped off at 10% of the taxable income. No tax relief is available for pension plan contributions exceeding the 10% cap. The zero tax-on-entry scheme in place until the end of 2002 was abandoned after life insurers successfully abused it for tax-evasion purposes. But since people made pension plan contributions under either scheme, that has wreaked havoc in the accountability of the amounts taxed at the entry and exit points of the pension system. The reinstatement of the zero tax on entry would tidy things up, Abadjiev argued. The zero tax proposal is too good to happen and therefore we suggest raising the tax deductible cap to 15% to stimulate people to invest in a supplementary pension plan, said Todor Yovov, executive director of insurance company CCB-Sila. The pension insurance industry has also proposed to increase the non-taxable pension plan contributions payable by the employer from 40 levs to 50 levs per insured employee in a bid to factor in the inflation and wage growth since the threshold was set in 2000.