Bulgarian Cabinet Backs off from 2 Taxation Bills

Business | June 9, 2010, Wednesday // 17:10|  views

The building of the Council of Ministers in downtown Sofia. File photo

Bulgaria's cabinet withdrew from the Parliament two bills which were prepared only a month ago as part of the package of measures aimed at neutralizing the negative effects of the economic crisis.

The decision was made by the Council of Ministers Wednesday.

The measures were subject to lengthy and heated debates between the government, the labor unions and the employers and were changed many times before their final approval.

The first withdrawn bill is for amendments in the legislation regulating corporate income taxation while the second involved taxation of revenues of individuals.

The amendments in corporate taxation provided for taxes to be paid not on the profits of insurance companies, but on reported revenues to significantly increase their amount for insurers and to bring an additional BGN 100 M to the State budget.

The cabinet lists as reason for the withdrawal the current work on new legal changes that would introduce indirect taxation on insurance premiums similarly to other countries in the EU.

For the second bill, the amendments included taxation on gambling revenues of 10% or equal to any other income tax to bring an additional BGN 80 M for the treasury.

The motive for the second withdrawal is listed as “the need to discuss and introduce new gambling taxation rules concurrently or after the passing of the amendments of the Gambling Act.”

At the time, both bills were met with strong oppositions from insurance and gambling businesses.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Tags: taxation, gambling, anti-crisis package, anti-crisis measures, Insurance Premium Tax Act


» Related Articles: