Home » News » Challenges in State Tax Assessment: Mayor Pencho Milkov Criticizes Inequities Across Bulgaria

Challenges in State Tax Assessment: Mayor Pencho Milkov Criticizes Inequities Across Bulgaria

When the state considers the tax assessment to be inadequate, this is what happens – the mayors are bad, commented Pencho Milkov

The mayor of Ruse, Pencho Milkov, disputes the classification of the buildings approved for rehabilitation by the state. The topic became a big case after it turned out that many owners who joined their efforts and applied for funds will not receive them, commented the host of “This Morning” on bTV, Maria Tsantsarova.

“The resource is indeed limited, but it was distributed among the municipalities according to their size, and we explained to the citizens that this money, which was promised for our cities, was invested in the rehabilitation blocks. All people conscientiously completed the tasks. Some municipalities, such as Ruse, invested funds. We have allocated BGN 1 million for energy inspections of residential buildings to help our fellow citizens,” said the mayor.

“However, it turned out that for the same blocks in Bulgaria, certain experts say that they can become class A, which is impossible, and similar buildings in Ruse do not achieve it, and therefore the classification is unfair,” he added.

They extend the deadline for applying for remediation

“That’s why I and the mayors of other cities want the state authorities to re-examine the energy surveys and say how the same type of unit can be class A in one municipality and not in another. My explanation for this double standard is that good practices in energy surveys were not followed,” commented Milkov.

“I am co-citizens from the largest block that applies in our city. Its survey is for BGN 127,000. They are given and this resource will be wasted. And in other cities it is almost proven that such buildings can become more energy efficient than a massive house,” he added.

“Panel blocks in Bulgaria are typical projects. Therefore, the mayors who opposed the energy surveys, we believe that there is no way that the same type of block in one municipality can be said to be of class A, and in another – not to be,” explained the mayor of Ruse.

However, experts say that it matters how a block has been managed over the years, host Zlatimir Yochev interrupted.

“Of course there is, but there is no way to tell the people from Stara Zagora, Ruse, Veliko Tarnovo, Pleven, Vidin that they did not manage the buildings well. The level for this is relatively the same throughout the country,” answered Milkov.

“Not even all the funds allocated to the municipalities are spent. Ruse was supposed to have BGN 50 million for rehabilitation, and only seven blocks have been approved. We are not given the funds because we were honest in our energy survey, and someone else wrote that in his municipality all blocks will be class A,” he added.

“The claim that there are god-anointed cities is not mine. Everyone has traveled by car in different parts of Bulgaria and sees how the public resource is spent in some municipalities and how it is spent in others. What do the roads look like and what percentage of European funds in the last seven years went to southern Bulgaria and how much to northern Bulgaria. It is high time for our municipalities to stop being harmed,” said the mayor.

However, Tsantsarova asked him why he raised property taxes in Ruse by 50%, and he replied that it was not drastic.

“They haven’t been touched for more than 11 years and the reason is exactly the same why the prices in the shops are going up. In reality, taxes and fees are an expense justification, and I have to secure the municipality’s expenses with reliable income,” said Milkov.

“We expected the state to make a change in the Law on Local Taxes and Fees. It had to update the tax assessments, which are nearly five times lower than market rates. Municipalities cannot determine the rules for tax assessment. They can only put a promil on it. When the state keeps it inadequate throughout Bulgaria, this happens – the mayors are bad,” he added.

2024-01-16 06:53:28


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