Bulgaria adds game changing tax to solar and wind projects
Bulgarian government has imposed a 20% taxation on incomes from renewable energy in a bid to curtail the country's growing energy costs. The decision to impose the tax was made despite heavy criticism and even street protests from the Bulgarian Photovoltaic Association and its members outside the building of the Economy, Energy and Tourism Ministry.. The association claims the government is ignoring the 2000 odd companies who have invested over EUR 4 billion in Bulgaria's solar industry and added over 15,000 jobs to the growing economy.
There is fear that many of the companies especially the local ones will not be able to absorb the tax leading to bankruptcies and job losses. According to the Association the amendment the government added in a recent budget bill, will break two major principles of the Bulgarian Constitution. Inviolability of private property and private investments security.
The proposal will not only see a tax on renewable income but will also place a cap on the number of operational hours any plant can receive tariff payments. The Bulgarian PVA claim that the culmination of the tax and the tariff restrictions will hit some developers and producers around 43% of their current income. The industry is accusing the government of a reckless and short sighted money saving venture.
The European Commission may have to decide the situation with aggrieved parties already taking the case to the arbitration process of the EU.