Excise duty on natural gas to be introduced as of next year. Diesel prices also to increase

For the first time, excise duty on natural gas would be introduced as of 1 January next year, decided the Parliament yesterday at the discussion of the amendments to the tax acts. The excise will amount to BGN 0,85 per gigajoule (GJ). According to experts, the final fuel price will increase by about BGN 0.3-0.4 per liter. Excise duties will not be levied on natural gas used for domestic needs and if the fuel is used for heating farm buildings, the excise duty will stand at BGN 0.10 per GJ.

Next year, the price of diesel fuel will also go up by about BGN 0.2 per liter. The rate will enter into force as of the beginning of next year, while methane will be levied an excise duty as of June 1 next year.
The UDF (Union of Democratic Forces) declared itself against the introduction of higher excise tax rates. ''Our motive was that 2012 will be a difficult year for the business sector and the population. According to us, there are not sufficient grounds for rising the excise duty rate abruptly, commented to Klassa daily, the MP Kircho Yordanov. ''We could wait until 2013 and if the economic situation improves we could proceed with a gradual increase,'' stated he.

The EU directive obliges us at the end of 2013 to harmonise our excise duty rate with the EU average, but nobody forces us to do it earlier, reminded Dimitrov.

Leftist lawmakers demanded in their turn that the effect of the flat tax imposition should be mitigated.

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