Up to 30% higher tax on old cars next year in Bulgaria

Parliament has finally voted to change the concept of tax on cars and trucks with a maximum weight of up to 3.5 tonnes.

The Transitional and Concluding Provisions of the Corporate Income Tax Act provide for amendments to the Local Taxes and Fees Act, which provide for the tax on vehicles to be determined by a new formula comprising two components - property and environmental.

The property component measures the power and year of production of the vehicle, and the new component - the environmental category and the pollution it causes to the environment. However, the tax increase can not be calculated precisely because the specific amount of the rate will be determined by the relevant municipal council, but it will not be more than 30%. 

The amendments must enter into force on 1 January 2019. According to the change management, since the "polluter pays" principle is introduced, the integration of which will encourage the use of clean vehicles.