THE CHAMBER OF CRAFTSMEN DEMANDS LOWER PATENT TAX
The patent tax for activities and crafts which do not produce output but only do repairs should be reduced by half. This requirement has been included in one of the provisions, projected in the draft bill for amending and supplementing the Natural Persons' Income Taxation Act. The draft was moved to Parliament on January 25, 2002 by Yordan Nihrizov, a deputy from the UDF-coalition. If the amendments are approved, the MP will insist that they should be enforced this year. The new provisions stipulate that the patent tax should be hiked by just 20% from last year's rate, as the accumulated inflation over the last three years is 16-18%, the representative of the Bulgarian Chamber of Entrepreneurs and Craftsmen Yossif Avramov, who took part in drafting the proposed amendments, explained. The Government's main motive was that the increase of the patent tax was necessary due to the inflation, accumulated so far. But instead by 20% the patent tax was hiked by 30% to 300% for the various activities, Mr. Avramov commented.The draft bill excludes other provisions as well, against which the craftsmen protested. Among them are: the additional BGN5 to be charged on each square meter of used trading area, and the payment of a patent tax for each working place, and not as until now - for each employed person. This forced many craftsmen to reduce the number of their employees, Mr. Avramov pointed out.One of the motives for the demanded amendments to the Natural Persons' Income Taxation Act is that instead of increasing, the revenues into the budget would decline as a great number of the entrepreneurs will go to the shady economy. Revenues from patent taxes into the budget will not rise by BGN30MN from 2001, as projected by the Cabinet, but will shrink by BGN15MN, Mr. Avramov forecasts. According to the Chief Taxation Administration's data, 170,000 taxation declarations were filed by mid-January 2002, which is 15,600 down from the same period of last year when 185,600 were submitted.