Menda Stoyanova, Chair of Parliamentary Budget and Finance Committee: We are raising the excise duty on fuels because of Brussels’ requirements

Lili Mircheva

Mrs. Stoyanova, a very serious session of the National Assembly is beginning but it will be quite difficult for the Budget and Finance Committee. The 2011 Budget Act and some important tax laws are to be adopted. Can we expect the Budget Bill to be moved to Parliament by the end of September, as announced in advance?
- After the approval of the 3-year forecast by the Council of Ministers before the summer recess, the drafting of the 2011 budget became easier, and the main parameters were practically worked out and adopted by the Cabinet. Last week, the major parameters of next year’s budget were presented to almost all first-level spending units in which our committee participated. The budget is almost ready and talks are being held now between the first-level spending units and the Finance Ministry. According to the estimates, the 2011 Budget Bill and tax laws are to be moved to the National Assembly by September 30 or October 1.

Which excise duties will be raised?
- We must raise the excise duty on fuels. The Tax-Insurance Procedure Code and some other laws will be amended but the changes will impose stricter fiscal discipline, create better conditions for observing the tax laws and tax discipline. The Cabinet will discuss the projected amendments and will submit them to Parliament. No other fundamental changes are expected but the Budget and Finance Committee will have a lot of work. I hope we will adopt the budget and tax laws in October or by mid-November.

Are you considering the possibility of introducing a luxury tax?
- A commitment to introduce a luxury tax was undertaken as an anti-crisis measure. We postponed its introduction for January 1, 2011 because, according to the Constitution, an annual tax cannot enter into force in the middle of the year. Therefore, it will find its reflection in the amendments to the Local Taxes and Fees Act.

The European Parliament is to approve a long-term financial programme for the 2014-2020 period. Will Bulgaria make specific proposals for the allocation of EU funds?
- I cannot answer this question because our Parliament does not play any role in the European Parliament.

What exactly is the 2020 Strategy?
- The EU has adopted the approach of developing a strategy for long-term plans. The idea is to concentrate the efforts of European economies in certain directions by 2020. The main objectives in the 2020 Strategy are to improve education and reduce illiteracy. Specific thresholds have been set; scientific and technical development has been set as a priority; the introduction of innovations, the promotion of scientific and technological development, green energy and green investments are among the main objectives. Bulgaria should adjust its policy accordingly.