Sofia's municipal council adopted the draft budget for 2008 with 39 votes in favour and 16 against on March 6, which carried over unfinished business from the February 28 session, when it was initially due to be voted. The municipal councilors from Bulgarian Socialist Party and Democrats for Strong Bulgaria were the ones to vote against.

Revenues would increase by 23.8 million leva, while expenditures will go up by 29.1 million leva. The total budget is 900 million leva.

The council also approved several increases of local taxes, including the tax on lands acquisition from two to 2.5 per cent and the property tax from 1.5 per mille to 1.875 per mille. Car taxes were also hiked by varying degrees, depending on age and engine power, although not as drastically as it was originally proposed.

Higher local taxes would bring the city hall an additional 40 million leva, but because the changes were passed after the February 29 deadline, they could be declared illegal by court order. Councillors said that the March 6 session was procedurally the second part of the session from the previous week, and as suchmet the requirements.

But legal experts over the past week have been saying that the excuse was flimsy at best and unlikely to stand up to scrutiny in court, where it is likely to end. "We raised the taxes, but now it is up to the appropriate institutions to decide whether they are legal," council chair Andrei Ivanov said.

The controversial tax amendments bill will be published on the city hall's website on March 7, but will be dated February 28. Unless challenged in court, it will go into force on March 10.