I have a question, why is pharmacy excluded from these sectors that will pay excess profit tax, asked Dimo Drenchev from "Vazrazhdane" in an interview with the Bulgarian National Radio.
"This sector should be there and be taxed seriously", the MP recommended in Nedelya 150.
"The Ministry of Finance announced a serious package of measures in 7 of the tax laws uploaded for public discussion. What worries me is that perhaps they are currently only showing us what is worth watching. And we will only see on the 15th the full scale of what the Ministry of Finance is preparing to offer to Brussels, and then to Bulgarian society, in order to reduce this budget deficit. Because Donev made requests that from 2027 we will go to a 3% deficit", commented Drenchev.
And he recalled that especially for the excess profit and on the banking sector "from "Vazrazhdane" we believe that it should be imposed on the example of seizing the profit of a company in the energy sector":
"Huge profits were generated there and at the European level they were seized because of the war. This bill provides for the seizure of 33% of the excess profit. The year 2020 was taken as a basis, when there was a Covid pandemic and business actually froze and there were no profits. And every year compared to 2020 will look like an excess profit and perhaps it is correct to subtract this year."
He pointed out that a bank makes over 3 billion euros from fees alone, unlike Greece, and in our country there has been no cap on fees, nor has there been a restriction on the services that can be subject to fees:
"We cannot have any pity for the banking sector, telecoms and the gambling business. 60% of excess profits are generated in these sectors, according to data from the Ministry of Finance. They have no reason to be angry, because this sector was given to them by the Ministry of Finance."
He also commented on the refinery in Burgas:
"Now that the state is governed by a special manager, it is normal to have profits. A sword of Damocles hangs over the Bulgarian economy – arbitration, in which the owners, if the refinery makes a loss, can seek them out."
According to Dimo Drenchev, the most serious problem is the impoverishment resulting from the very high inflation:
"We have proposed a reduction in the VAT rate for all fuels, also 0 VAT for goods from the small basket. Poland dropped to 8% VAT on fuels and reduced VAT on fuels from 23%. I believe that a government that takes good care of its people in crises could come up with arguments and request a derogation. The budget will come out with a much smaller deficit than planned, unless they have committed large infrastructure costs. Donev could not explain how they will be spent and I believe that they will not be absorbed, unless they pull out some military or infrastructure cost from their sleeve. The Bulgarian Prime Minister is highly dependent on the Turkish President and it is possible that they will force us to invest in a project that is in the service of Turkey and the other option is for the American partner to force us to buy weapons."
Drenchev believes that a 3% deficit cannot be the main goal, " it should be for Bulgarians to live with dignity and well. A very large part of European countries do not participate in 60% of GDP and a 3% deficit. More than half of the countries in the EU are in an excessive deficit procedure. The government must ensure that people do not become impoverished, that companies do not go bankrupt, and then the Maastricht criteria or those imposed by Brussels should be observed."
The MP from "Vazrazhdane" recalled that Bulgaria had hastily joined the eurozone without being ready.
"No mercy for the banking sector and these retail companies that export profits abroad", Drenchev urged.