Higher property tax assessments. By 30 percent from next year. And gradually in the following ones - up to 100 percent. This is one of the ideas for changes that have not yet been written down, but were announced by the government.
“Tax assessments certainly need updating, since this has not been done for more than 20 years. At the same time, the real value of residential properties, especially in Sofia, has increased many times“, said in “Face to Face“ on bTV Ivan Takov, chairman of the "BSP - For Bulgaria" group in the Social Security Administration.
„But the mechanical increase only in tax assessments is socially unjust“, he specified.
„It is not fair to treat a pensioner who bought an apartment 40 years ago and an investor with 15 homes in the same area in the same way“, is Takov's opinion.
According to him, this is why it is very important to have differentiation.
„Tax assessments can be increased in stages, because this would automatically have an impact on the revenues of municipalities. Raising the tax assessment will affect at least three items of the budget - real estate tax, the refundable transfer of properties and the household waste tax“, explained Ivan Takov.
„It is high time for the rich to take on a greater share of the tax responsibility, and this also applies to real estate. The apartment has two functions - to be used for living, and the other is investment value. Currently, perhaps about 25% of the apartments in Sofia are empty“, he added.
According to him, Sofia Municipality has not had a housing policy for 35 years.
“In 1990, Sofia Municipality woke up as the owner of 120,000 apartments. Currently, there are about 6,000 left. If Sofia Municipality wanted to be a major player and be able to regulate the market, it should have continued to accumulate this housing stock during these years instead of selling, so that it could have the function of regulating the property market“, Takov believes.