Adopted Municipalities’ proposals on Local Taxes and Fees Act

28.11.2018

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National Assembly finally adopted amendments to the Corporate Income Tax Act. With this on NAMRB proposal amendments directly affected  municipal activities were incorporated in the Local Taxes and Fees Act. 

Transition to the new calculation model of the waste fee on the basis of the quantity collected household waste is postponed for 2022. NAMRB and municipalities proposed to be combined two campaigns- the mandatory declaration of the number of residential properties users with the population and housing Census in 2021. This will ensure better results without unnecessarily burdening the citizens and the businesses. 

The next supported local authorities proposal is for the introduction of an environmental component in the tax formula for cars and trucks up to 3.5 tonnes. This in practice means that for the old cars with lower environmental categories higher taxex will be payed. Annual Tax increase is small, but as the old cars are a lot, this will be is an additional income for the municipalities to maintain the road network. 

Higher taxes are introduced for properties in resorts formed by three criteria: the property is not a main residence, is not a place of accommodation and is not registered as a tourist site. 

These proposals were widely consulted with municipalities- through consultations on specific texts, on NAMRB Permanent committees’ sessions, at national forums. After their approval by the NAMRB Management Board, they were submitted to the parliamentary committees.