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Bulgaria Govt Introduces 'Luxury' Tax to Counter Crisis.

Bulgaria PM Boyko Borisov has stated that the flat rates for income and corporate taxes will remain but that there will be a 'Luxury' tax introduced to counter the financial crisis.

Borisov, speaking after a cabinet meeting to discuss anti-crisis measures, said that the luxury tax will be introduced. He also said that the current fiscal reserve totals BGN 6,5 B.

The 'Luxury' tax will be put on owners of: cars of over 150 horse power, yachts and houses/apartments of over 250 square meters.

Another of the anti-crisis measures will be to put a ceiling on the wages of state employees. "The wage of the Prime Minister must be the largest of the state officials," Borisov said. He pointed out that there are some state hospitals where the average wage amounts to BGN 35 000 and even up to 72 000 per month.

"I work Saturdays and Sunday and take home less than BGN 3000," Borisov added.

Borisov concluded by saying that his government would not meddle with taxes on the private sector but added that a tax will be placed on bank deposits of over BGN 100 000.

The center-right GERB Cabinet's proposal is not their final plan and will now be discussed further with unions and employers.

Earlier Sunday Borisov revealed a huge hidden budget deficit caused by illegal contracts of over BGN 2,12 B that were signed by the previous government.
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Publication:Sofia News Agency
Date:Mar 21, 2010
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