"Bulgaria should change its tax system, make it European, follow the practice of the vast majority of countries around the world".
This was stated to the Bulgarian National Radio by economist and former Deputy Prime Minister and Minister of Economic Development Prof. Rumen Gechev, after the EC recommended that our country abolish the flat tax.
"Finally, the EC is proposing something meaningful, after years of EU and EC leadership making the EU find itself in a difficult economic situation. This recommendation is reasonable. It is not mandatory, but it is recommended. 95% of countries around the world have progressive taxation. Not a single country has gone through with a flat tax, gone from developing to developed. Wherever you look on the map - this issue has never been discussed - whether to switch to a flat tax, because these are countries that have had progressive taxation for decades and centuries", he explained in the program "Predi vys".
"People with low incomes will have their tax payments reduced. They will increase, of course, for the upper middle class and the rich - this is the case all over the world. Somewhere along the way someone will make millions and pay 10%, and nurses and people with low incomes will also pay 10%. There is no room for argument".
In his words, we must strive to maintain our finances in accordance with the EU treaty. But at the same time, the behavior of developed countries in the EU is cynical, believes Prof. Gechev and specified:
"For 16 years, France has had huge budget deficits. No one has been punished by the EC. Bulgaria will eventually be the first to be punished for having a record low debt to GDP ratio and for 2 years now we have had an increase in the budget deficit of over 3%. The most developed countries of the EU have neither had a deficit nor observed public debt for years and so far they have not punished anyone. The Bulgarian government should not accept such an approach of the EC towards our country," said Prof. Rumen Gechev.
The richer people in the whole world pay higher taxes, Prof. Gechev repeated again. According to him, the dilemma is either we borrow more or the rich pay more.