/ world today news/ Not only in Bulgaria, but also in Europe, inequalities are increasing, and after the Covid-19 pandemic, the rich have become richer, the poor are even poorer. The head of the Delegation of the Bulgarian Socialists in the European Parliament, Petar Vitanov, commented on this to “Bulgaria Morning” on Bulgaria on Air. Last week, 130 MEPs, including Vitanov, called for a tax on the super-rich, similar to that on multinational companies. The previous landmark deal for a global minimum of 15% tax on multinational businesses will take effect from this year.
“The initiative was started by a group of millionaires from Davos, who themselves came to the conclusion that more revenue should be generated so as to fill the state coffers,” commented Vitanov.
“Our proposal is simple – introducing a progressive tax on the state of the ultra-rich at the international level with the aim of reducing inequalities and supporting financial investments for a green and social transition,” explained Vitanov.
“We already have a global levy on multinationals of 15% after it was found that large multinationals pay 9% tax and the rest over 20%. This showed once again that the big ones have the opportunity to evade taxes by migrating their money to countries with low taxes or to offshore zones,” the socialist added.
“Inequality that is created kills. According to data from Oxfam (an international association that has the task of solving the problems of poverty and related injustice), one person dies every four seconds. When a country has no money neither for pensions, nor for social policy, nor for access to health care, it costs human lives,” said Petar Vitanov.
And the Bulgarian government proposes similar taxation. According to the representative of the Socialists in the EP, the tax on excess profits is a step in the right direction.
“I carefully reviewed the report of the Ministry of Finance, where it can be seen that the state has provided nearly BGN 6 billion in aid in the last year alone. In 2020 and 2021, they are over BGN 2 billion each. At the same time, the generated profits for last year are expected to be in the amount of 47 billion BGN, against 37 billion for 2021 and 27 billion for the pandemic year 2020. That is, we have greater profits in the amount of 20 billion in two years. At the same time, there are sectors with visible cartel agreements, where the final price is calculated on the back of the consumer, and this should be stopped,” commented Vitanov.
According to the socialist, excess profits cannot be measured by one arshin.
“You can’t stop aid for electricity, for example, in sectors where billions are made, and in the neighborhood store that is barely surviving after the pandemic,” said the MEP, adding that the finance ministry must find the right formula so as not to prove that small businesses are making “excess profits”.
According to Petar Vitanov, there should be no tension about the state of state finances, but attention should also be paid to the “red lights” that are on. Ending a large part of the benefits, by seeking a fairer distribution of the money from the excess profits, limiting corruption and increasing the collection will provide a way out of the situation.
“If there is a regular government and a working parliament, the tax system should be changed. If we want to have a strong country, with a solid social, health policy, education, the return of the progressive tax is necessary. Those who have more income, to allocate to society in solidarity. This is the case all over the world, in the most liberal countries, even in the USA,” said the MEP.
To contact the Group of the Progressive Alliance of Socialists and Democrats in the EP:
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