site.btaPresident Vetoes Higher Taxes on Older Vehicles

ESD 14:03:01 13-11-2018
MY1402ES.114
114 - POLITICS - PRESIDENT - VETO - VEHICLE TAXES

President Vetoes Higher
Taxes on Older
Vehicles


Sofia, November 13 (BTA) - President Rumen Radev vetoed amendments to the Corporate Income Tax Act which set in place higher taxes on older vehicles as a measure to deal with air pollution, said his Press Secretariat Tuesday. The President argues that the higher taxes will not encourage the replacement of older cars with new ones and will not produce the desired environmental effect.

"The new rules will put the tax burden on low- and medium-income people, as well as on small and mid-sized businesses," the President says. He further argues that the new taxation scheme does not reflect the frequency of using a vehicle, whether or not it has a catalyst, or the type of fuel it uses. "There are no guarantees that the proceeds from this tax will be spent for environmental purposes," says Radev.

He further slams the power-holders for what he calls "an ungrounded delay" in reforming waste taxation, arguing that it is unfair when all deadlines are binding for people and businesses, no matter whether they are ready or not, and deadlines always get postponed for the State without any grounds. "This is especially unacceptable when the enforcement of a constitutionally inadmissible regulation gets extended," he says, adding that this is the case with taxing taxpayers based on the value of the property rather than the amount of waste they generate.

Also, the President disagrees with the increase of taxes for properties in resort towns, depending on how the property is used. RY/LN/