Bulgarian Govt Discards Luxury Property Tax as Useless

Bulgaria will not not introduce higher levies on luxury properties, MP Menda Stoyanova, head of the budget and finance committee of the Bulgarian Parliament, declared.

"The luxury tax will not be introduced, since it will not bring anything to the treasury", Menda Stoyanova said.

"A mere BGN 6 M would be earned for the state budget be enforcing the measure. Only 5 700 real estate properties in Bulgaria are currently qualified as "luxury", she explained

Owners of luxury cars are already taxed higher, according to Stoyanova

She clarified that the luxury properties, which in October were "spied on" by National Revenue Agency helicopters, do not fit the aim of the proposed new tax legislation, as they are illegal.

The proposition to introduce a luxury tax has already been dismissed on Tuesday's GERB parliamentary group meeting with the participation of experts from the Financial Ministry.Bulgarian Financial Minister Simeon Djankov has also declared he opposes the measure.

The proposed changes in the tax legislation were supposed to affect the owners of real estate property, estimated to be worth more than BGN 300 000. .

The luxury property tax measure was announced for the first time in March 2010 after an extraordinary cabinet meeting called to discuss anti-crisis measures. The center-right government focused its austerity measures on the wealthy, after its plans to raise the healthcare tax and cut benefits to civil servants triggered protests.

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