Bulgarian Constitutional Court repeals the tourist tax
The Bulgarian Constitutional Court repealed the tourist tax, introduced in April last year, reported mediapool.bg. The case was initiated at the insistence of lawmakers from the parliamentary Opposition. In 2011, 61 MPs from BSP (Bulgarian Socialist Party) and DSB (Democrats for Strong Bulgaria) opposed the imposition of tax amendments to the Local Taxes and Fees Act. Pursuant to these amendments, the tax replacing the tourist tax was calculated on the basis of at least 30% occupancy of the accommodation facility, regardless of whether there was such an accommodation occupancy rate during the year. The tourist tax was estimated on the basis of the registered number of nights spent in the hotel. Owners of hotels and restaurants were worried because they reported an accommodation rate of some 20% and were taxed for over 30% without earning any real revenue.
At a time of crisis, this financial burden affected the business sector, commented for Klassa daily Blagoi Ragin, Chairman of the Bulgarian Hotel and Restaurant Association. He said that they accept the court's decision with relief because it regulates the rules stipulating payment for services provided only and not for roughly calculating the probable accommodation occupancy rate. It is very important to know how the accumulated resources will be spent rather than be informed on the actual amount collected. In our opinion, these funds must be invested in advertising initiatives and brochures, added Ragin.
This year, tourist visits are expected to grow by some 5% -6%. The contribution of the tourist sector to the balance of payments for 2011 reached a bit over BGN 2.6 bn, stated Deputy Minister of Economy, Energy and Tourism, Ivo Marinov. He flatly opposed the allegations that Bulgaria is a 'cheap tourist destination' and a destination for 'alcohol and beach tourism'.
Text: Klassa.bg
Photo: Klassa.bg