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Proposed changes in real estate tax valuation.
The Ministry of Finance (MoF) proposed an average 20%-increase of tax valuation of real estate property for 2006. The ‘tax value’ is used to calculate annual property tax, garbage collection municipal fees and property transaction tax. The change will probably be accepted by the government and consequently the parliament. There ...
Industry Watch released Q3 2005 Housing Market in Bulgaria report.
The report is available through subscription, prices start at BGN 890 per annum. For more details, use the link on the right or contact us at: subscription@iwatchbulgaria.com....
The change in crude oil prices increases households’ expenditures by 1.3-2.5%.
The impact on economic growth for 2005 will be a reduction of 0.2 percentage points. The rise in crude oil prices in the last three months by about 25% will affect households’ budgets in different way according to the structure of their consumption. The effect will be stronger for those in active labor force in the big cities as...
In a secret vote on 27th July, the parliament rejected the government proposed by socialist leader Sergei Stanishev.
The coalition had 116 votes; it could also count on one MP that left the Ataka faction earlier and openly announced its support for BSP cabinet. The vote was a two-stage one: first, Sergei Stanishev had to be approved as prime minister, and second, the parliament had to approve the structure and the staff of the cabinet. Stanish...
Real productivity growth stays at 2% y-o-y.
The average productivity dynamics slowed down substantially during the last two years. From about 5% the real productivity growth slowed down to 2% in late-2004 and early-2005. This is an estimation for the non-farm business sector of the economy, i.e. excluding public sector and farming. Measured in EUR, productivity grows at a...
Short-term fiscal policy of the new government: possible scenarios.
Industry Watch report is available in Bulgarian; please contact us for more details....
The dollar inflation is only part of the story behind oil price records.
Part of the reason for the long-term rise of oil prices is purely monetary, viz. inflation of the dollar and of the euro. Prices of most tradable goods, not only the prices of oil, have risen substantially for the past two years, especially when we talk about metals. On average, industrial goods prices rose by 58% in three years...
Trakiya Motorway concession would have a significant fiscal and macroeconomic effect in Bulgaria.
Privatization and deregulation in Bulgaria are often subject to obstacles imposed by the Judiciary. From the recent history we know that, although the formal justification of the judicial intervention is always check of procedures and their consistency with the law, in most of the situation expediency is the leading argument.The...

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