BULGARIA TO INCREASE DIESEL EXCISE TAX AS OF 2013

Bulgaria's Finance Minister Simeon Djankov has explained that excise duty on diesel will increase from BGN 630 to BGN 645 per 1000 liters in 2013.

The increase is part of a schedule for gradual increases in fuel excise duty agreed with the European Commission.

Bulgaria is to achieve the EU minimum rates by end-2013.

In a Wednesday interview for Nova TV, as cited by Class daily, Djankov corrected an earlier statement of his that tax rates in Bulgaria would remain unchanged in 2013.

He noted that Bulgaria had committed to the excise hike schedule before the start of the current government's term in office and the arrangements could not be amended.

"The matter involves, if I remember correctly, less than BGN 0.01, so it will not make a big difference about the government's plans about the tax policy under Budget 2013. My response to the question is "non". No, we do not intend to make any changes whatsoever, including in the direction of VAT differentiation. The Ministry of Finance will not back any proposals for differentiated VAT rates in any sector," Djankov stated.

Diesel prices are expected to increase by BGN 0.01 – 0.02 per liter, VAT excluded, or BGN 0.02 – 0.03 per liter, VAT included.