14:44 - 09 November 2005 - Bulgaria's Parliament approved on first reading the amendments to the Corporate Tax, Sofia news agency rerorts.

Under the new reforms, the social expenses tax will be decreased by 5% to 12% and the tax on expenses for voluntary social and pension funds was also decreased by 5%. The MPs rejected a bill introduced by the United Democratic Forces (UDF) proposing for the profit tax to be reduced from 15% to 10%.

The Parliament also passed at first reading a bill amending the Local Taxes and Fees Act that envisages an increase in estate tax appraisals and tax exemption for estates appraised at less than BGN 1,400.

Tax appraisals should be increased because real estate prices have gone up 1.5 to 3-fold since 2000, and property tax rates have not been updated since 1999, stated the Council of Ministers.