


September 7, 2010 - The Bulgarian Ministry of Finance (Simeon Djankov - image below.) has published proposals for adjustments in the tax system in a bid to increase revenue for the 2011 state budget.
The proposals, posted at the Ministry's website, do not involve an overall increase in taxation rates, but introduces greater levy burdens for some cases. 
Key proposed innovations include a unified VAT for the tourist sector, a new offshore tax, as well as increases in the rates for fuels and some tobacco products.
Some of the amendments to the tax legislation are motivated by the Ministry of Finance with the need to harmonize Bulgarian regulations with EU norms. This includes the tourism VAT rate, which at present is 7% for organized groups and a regular 20% rate for self-organized tourists. The proposal is for a 14% unified rate for all tourist transactions, which will guarantee equality for all tourists.
The increase in fuel excise also follows an agreement with the EU. The proposal for regular gasoline is BGN 710 per 1000 l instead of the current BGN 685.
The excise for cigarettes will also be adjusted, with cigarettes up to 8 cm (filter excluded) taxed at the regular rate, cigarettes 8-11 cm taxed at a double rate, and products 11-14 cm at a triple rate.Directly related news briefs: April 1, 2010 - Bulgaria - every increase in excise duty on cigarettes consumption goes down.;
A 10% tax will be levied at the source for offshore transactions to reduce tax evasion and money laundering.
March 31 2010 - Bulgaria - grace period over, increase in tobacco tax starts Thursday, April 1, 2010...
A major innovation is proposed in the field of depreciation (amortization), which sees the speed of depreciation of assets decreased. This will increase the value of companies' assets and so the amounts taxable.
Reference: Bulgaria to Up Some Taxes to Boost 2011 Revenue, Novinite.com, 9/7/2010.
Bulgaria - cigarette smuggling news briefs:
Bulgartabac - 1st half 2010 - Bulgarian Tobacco Company Registers Huge Profit Increase..;
Bulgaria - customs agents find large scale cigarette contraband.. ;
Bulgaria - customs intercepts 6-tons of smuggled tobacco headed for Romania..;
Bulgaria - were the cigarettes contraband or not..Moldova says NO..;
Bulgaria - Italian authorities arrest 2-Bulgarians smuggling cigarettes..;
Bulgaria - do producers support contraband cigarettes??;
Bulgaria - illegal trade in cigarettes will reach 40% of total trade in 2010..;
Bulgaria -two cigarette smuggling attempts busted on Serbian border..;
Bulgaria - police busts major cigarette contraband ring..;
Bulgaria - MPs Impose Hefty Fines on Cigarette Sales Violators..;
Bulgaria and others - smoking ban, increased cigarette taxes, smuggling..;
Bulgaria - cigarette contraband, government loses BGN 920M yearly..;
Bulgaria - one third of the tobacco products sold are illicit..;
PMI training Bulgarian custom officers to stop cigarette smuggling..;
WHO FCTC Protocol to Prevent Illicit Trade in Tobacco Products Won't Be Completed Until End of 2010..;
Read more...



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