site.btaPreferential Excise Duty Rate Will No Longer Apply to LPG, Diesel Fuel for Heating Purposes - Finance Minister

Preferential Excise Duty Rate Will No Longer Apply to LPG, Diesel Fuel for Heating Purposes - Finance Minister

Sofia, September 9 (BTA) - A preferential excise duty rate will
no longer apply to liquefied petroleum gas and diesel fuel for
heating purposes, according to draft amendments to the Excise
Duties and Tax Warehouses Act, approved by the Council of
Ministers on Wednesday. Finance Minister Vladislav Goranov
commented after the Cabinet meeting that the move is prompted by
 the numerous abuses of excise duties on these fuels. In his
words, the central-government departments which use heating fuel
 will be compensated through the expenditure side of the budget
like, for example, the Ministry of Education, which is expected
to be hit hardest.

The draft legislation also proposes a new structure of excise
duties on tobacco products to offset the pressure on the
increase of low- and medium-class cigarettes and thus deter
excise duty evasion in coming years. Goranov recalled that
taxation was substantially rebalanced in 2009-2010, resulting in
 an enormous pressure on the market, and excise duty evasion
increased dramatically. "We want to avoid the manifestation of
this effect next year and until the end of 2017, because under
the EU Regulation we are bound to reach new minimum excise duty
levels for tobacco by 2018: 90 euro per 1,000 items," he pointed
 out.