Up to 30% Higher Tax on Old Cars Next Year in Bulgaria

Parliament has finally voted to change the concept of tax on cars and trucks with a maximum weight of up to 3.5 tonnes.

The Transitional and Concluding Provisions of the Corporate Income Tax Act provide for amendments to the Local Taxes and Fees Act, which provide for the tax on vehicles to be determined by a new formula comprising two components - property and environmental.

The property component measures the power and year of production of the vehicle, and the new component - the environmental category and the pollution it causes to the environment. However, the tax increase can not be calculated precisely because the specific amount of the rate will be determined by the relevant municipal council, but it will not be more than 30%, reports Darik. 

The amendments must enter into force on 1 January 2019.

Тhe opposition made a strong announcement аgainst this tax change.

"70% of the cars in Bulgaria will be subject to a higher tax. These are the cars of the poorer Bulgarian citizens, "said Ivan Ivanov, MP from BSP. According to him, every change in tax policy must first consider the citizens who fill the treasury. "You take a serious step in the way of depriving Bulgarian citizens of the opportunity not only to buy cars but also to drive their old ones. On top of that, fuel prices are flying right up to the sky and people are protesting, "Ivanov added.

His colleague Tasko Ermenkov also criticized the government for the change. "Do not look for ways to fill in the tax because you can not do it through economy and value added, but through taxes. And through of the poor! As always - the poor pays everything! ", Said Ermenkov.
 
The United Patriot's deputy Georgi Kolev defended the changes by referring to statistics,...