Supreme Administrative Court Overturns Price Increase in Burgas Blue Zone

With its decision, the Supreme Administrative Court finally overturned the price increase for parking in the blue zone in Burgas.

The case was initiated in the SAC following an appeal by the Municipal Council in the sea town after a decision of the Administrative Court, which maintained the old prices.

The local parliament voted and adopted new prices for paid parking in February last year, with the inclusion of 20% VAT in them and improvement of the service among the motives.

The planned increase was for the price to jump from 1.30 BGN per hour to 2 BGN, as well as an increase in the services for short-term parking, a parking ticket for parking machines, an electronic parking voucher, and a 'weekend package'.

The Supreme Magistrates accept that state and local authorities are not tax-liable persons for all activities or supplies carried out by them in their capacity as an organ of state or local government, including in cases where they collect fees, contributions or remuneration for these activities, which includes services for providing the right to park in certain zones of areas and roads, public municipal property.

According to the SAC, the first instance court correctly ruled to annul the disputed provisions, as it found a significant procedural violation in the adoption of the sub-legal normative act – neither the documents nor the publicly presented motives contain real analyses of how the increase affects the budget of citizens and businesses. They are based only on general formulations such as 'improving the service' without specifying figures and consequences.

The decision of the SAC is final.