FIRST STEP TO THE FINANCIAL DECENTRALIZATION OF MUNICIPALITIES
Primorsko is the first municipality in Bulgaria with a pilot project on the administration of tax liabilities. The agreement for entrusting the authority was signed on June 30 by the Chief Taxation Director Nikolay Popov and the Mayor of Primorsko Dimitar Dimitrov.According to preliminary estimates, the revenues of the municipality will increase by at least 30 per cent, Primorko's Mayor said. His forecasts are based on the good knowledge of problems connected with subjects of taxation and the numerous ways for impinging on the collection of taxes. Under article 237, items 3 and 4 of the Tax Procedures Code, the Chief Taxation Director has grounds to entrust authority to the mayors and municipalities. The Mayor of the Primorsko municipality will set the taxation obligations, connected with the Local Taxes and Fees Act, send notices to citizens regarding inaccuracies in their tax declarations and about the due fees and taxes. Invitations for voluntary payment of the liabilities under the Local Taxes and Fees Act will be sent and fines will be imposed. The entrusting of authority under the Tax Procedures Code will result in an increase of the revenues into the municipal budget, raise the collectibility of taxes, and improve the complex servicing of tax-payers. According Mr. Popov this is the first step to the self-management of municipalities, improvement of the tax administration and financial decentralization.