10/25/12 17:28
(http://www.klassa.bg/)

Tax on bank deposits interest approved by Parliament

Parliament approved the introduction of a tax on bank deposits interest. On Thursday, MPs decided at first reading that, as of January 1, 2013, a 10% tax will be levied on the interest earned from bank deposits of individuals. The tax was introduced by amendments to the VAT Act with the votes of 86 MPs, two abstentions and 29 ‘nays’. The Parliamentary Group of Coalition for Bulgaria and MRF (the Movement for Rights and Freedoms) opposed the introduction of such a tax.

The interest on bank deposits will be considered as earned as of the date of calculating the interest, the draft says. The tax will be collected and paid to the budget by commercial banks within the month following the quarter of calculating the interest.

The new tax will not be charged on deposits with no fixed term, such as current accounts and the money on debit and credit cards. According to Deputy Finance Minister Vladislav Goranov, the interest on kids’ bank accounts will not be taxed either.

“Why is the tax on online gambling being reduced and a tax is being imposed on the interest earned from bank deposits,” Martin Dimitrov, MP from the Blue Coalition, asked during the debates. “We want high taxes on gambling. Higher taxes result in higher demand for the respective activity. The necessary measures for collecting taxes from gambling have not been taken,” underlined Dimitrov.
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