Charlotte
31-01-06, 09:59 AM
Old cars import VAT will be dropped in 2007, which will open a hole in the budget
Finance Ministry experts consider that the Government should introduce a tax on second-hand cars import. The tax will be collected at Traffic Police offices when the cars are registered. The tax will substitute for the value added tax (VAT) that will be dropped at Bulgaria's EU accession, scheduled for 2007. Thus, at least partially the state will compensate for the huge losses in the budget when after 2007 the VAT takings will be discontinued.
The tax should not be lower than the current VAT because otherwise Bulgaria will turn into a graveyard for second-hand cars, importers believe and reminded that European practice is to encourage purchases of new cars. Last year 170 thousand old cars were registered in Bulgaria and 39 thousand new, according to data of the Traffic Police.
http://www.standartnews.com/archive/2006/01/31/english/
Finance Ministry experts consider that the Government should introduce a tax on second-hand cars import. The tax will be collected at Traffic Police offices when the cars are registered. The tax will substitute for the value added tax (VAT) that will be dropped at Bulgaria's EU accession, scheduled for 2007. Thus, at least partially the state will compensate for the huge losses in the budget when after 2007 the VAT takings will be discontinued.
The tax should not be lower than the current VAT because otherwise Bulgaria will turn into a graveyard for second-hand cars, importers believe and reminded that European practice is to encourage purchases of new cars. Last year 170 thousand old cars were registered in Bulgaria and 39 thousand new, according to data of the Traffic Police.
http://www.standartnews.com/archive/2006/01/31/english/