site.btaOmbudsman Opposes Proposal for Property Tax Increase

Ombudsman Diana Kovatcheva has sent an opinion to the MPs in six parliamentary committees against a Finance Ministry proposal for amendments to the Local Taxes and Fees Act, which include an increase in the property tax assessed value, Kovatcheva's press office said.

The Ombudsman has sent her opinion to the Committees on Budget and Finance, on Regional Policy, Public Works and Local Self-Government, on Economic Policy and Innovation, on Agriculture, Food and Forestry, on Transport and Communications, and on e-Government and Information Technology.

The bill of amendments envisages updating the property tax assessed value every two years by the house price index set by the National Statistical Institute. Prof. Kovatcheva said that if this controversial provision is adopted, it will lead to an increase in property taxes and waste fees, as well as in inheritance tax, property acquisition tax, stamp duty, and notary fees in proceedings under the Code of Civil Procedure.

The Ombudsman calls for analysis of the social impact of higher property taxes, especially on vulnerable groups. She argues that an increase would put at risk the elderly residents of small towns or cities who live in old housing and have low incomes. Kovatcheva is adamant that the tax increase will put an extra burden on them because they can hardly cover their daily needs or save for treatment and unforeseen expenses.