/ world today news/ “A survey was conducted to ensure that there is no full-fledged discussion about where Bulgaria is going, in terms of who pays and who drinks. In Bulgaria, the poor pay, and the right-wing government and the families around it consume and drink their 12-year-old whiskey with salmon and caviar.”
This was stated today by the leader of BSP Left Bulgaria, Mihail Mikov, from the parliamentary rostrum on the occasion of his negative vote during the voting on the first reading of amendments to the Law on Corporate Income Taxation.
“People cannot afford to send their children to school. You reinforce the policy of raising taxes. You bring back the memory of what you did in 2010 – tax “hut”, now – “garden”, tomorrow – “birds”. This policy will lead the treasury to the point where they will take the hawks to work and impose new loans on you in order to bury Bulgaria”, said Mikov.
Deputies adopted at first reading the amendments to the Law on Corporate Income Taxation, through which amendments are introduced to five tax laws. And the proposals made by BSP leader Mikhail Mikov for progressive income taxation were rejected.
In the reasons for the draft law, it is stated that the draft was drawn up in connection with the need to harmonize and align the national tax legislation with the requirements of the European directives in the field of direct taxation, as well as aligning the texts of the law imposed in the process of notification of the tax measure representing state aid for regional development. In order to avoid cases of double non-taxation arising from differences in the tax treatment of distributed profits in different Member States, the Member State of the parent company should not allow the tax exemption. The adopted amendment in Art. 4 of Directive 2011/96/EU, made by Directive 2014/86/EU, which is also introduced into the Bulgarian national legislation with the proposed addition to the provisions of ZKPO, regulating the cases of exemption from taxation of income from dividends distributed by foreign persons who are residents for tax purposes of an EU member state or of another state party to the Agreement on the European Economic Area.
The bill’s transitional and final provisions propose changes to the Personal Income Tax Act, the Local Taxes and Fees Act, the Value Added Tax Act, the Tax Insurance Procedural Code and the Cash Payment Restriction Act. Changes have been proposed in the Personal Income Tax Act, related to the provision of the opportunity for diplomatic missions in Bulgaria to withhold and remit tax on the income from employment relationships of local individuals who work for them. The project envisages the possibility of deducting the mandatory health insurance contributions under Art. 40, para. 5 of the Health Insurance Act (HIA) for all incomes that are taken into account when determining the final amount of insurance income with the aim of maximally harmonizing the tax law with the insurance legislation, as well as preventing contradictory practice in the application of legal provisions.
The proposed changes to the Law on Local Taxes and Fees aim to facilitate the practical application of the law. In order to prevent the possibility of receiving a double preference by the owners of renovated multi-family residential buildings with public funds, and to achieve equality with the persons who renovate their residential buildings with their own funds, it is proposed that the tax relief does not apply to buildings that received an energy efficiency certificate as a result of public funds provided under the National Program for Energy Efficiency of Multifamily Residential Buildings.
The Tax and Insurance Procedural Code envisages a change, according to which tax obligations under ZMDT can be established with an act to establish the obligation both on the basis of a declaration submitted by the liable person and on the basis of data from the register under Art. 54, para. 1 of the ZMDT. The change is related to the new regime introduced on January 1, 2015 regarding the declaration and determination of vehicle tax.
The proposals made for changes to the Value Added Tax Act (VAT) are related to the need to clarify provisions that create difficulties in the practical application of the law, as well as to harmonize Bulgarian tax legislation with the requirements of European directives and Court decisions of the European Union in the field of indirect taxation. It is proposed that the legally regulated threshold for limiting cash payments in the country be reduced from BGN 15,000 to BGN 5,000 as a measure to limit the shadow economy. The proposed additional limitation of cash payments through a change in the Law on the Limitation of Cash Payments is in line with the established practice in the member states of the European Union, where the threshold for limiting cash payments is in the range of 2,000 to 3,000 euros.
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