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Bulgarian MPs Pass Tax Hike on Minimum Property Value

Monday, Dec 06, 2010

The Members of the Bulgarian Parliament revoked Wednesday the minimum property value threshold that was free of tax by passing amendments to the Local Tax Act at second read.

With the change, owners of properties with tax appraisals below BGN 1 680 will have to pay taxes as well.

The proposal was submitted by the cabinet of the ruling Citizens for European Development of Bulgaria (GERB) party and was passed by the votes of GERB MPs and those from their ally – the far-right, nationalist "Ataka" party, despite criticism, coming from the opposition, such tax would be difficult to collect and expenses for its administration would end up being higher than the revenues.

GERB MPs supported the change on the grounds local authorities are insisting on having it and it would increase municipal revenues.

It was reported meanwhile, Sofia Deputy Mayor, Minko Gerdzhikov, had proposed a new zoning of the city, which would lead to higher property and waste disposal taxes for owners in several districts such as "Zona B-5," "Kriva Reka," the area around the Central Railroad Station and the suburbs of "Boyna," "Dragalevtsi," and "Malinova Dolina."

Sofia so far is the only large Bulgarian city considering increasing the property and waste disposal tax, the Bulgarian daily "Dnevnik" writes, citing their own inquiry with the Varna, Burgas, and Plovdiv City Halls.

Source: novinite.com