Банкеръ Daily


The Flat Tax Should Not Be Changed, Emil Harsev Is Adamant

The flat tax should not be changed. This will deprive Bulgaria of one of its very few advantages it has in competition with other countries - to attract investment and direct income. The financier Emil Harsev expressed his opinion.

In his words we have a very high tax collection. "Collection rate" means what percentage of sums payable I have collected and not what percentage is  the collected income tax related to GDP. Naturally, in a period of depression it will be lower than in a period of recovery - the years from 2003 to 2008, "the expert told the national radio.


The world is moving towards unification of taxation, Harsev is categorical.

According to him, the return of progressive taxation is "a thesis of a circle of social engineering economists." "This is a program of the Organization for Economic Cooperation and Development to harmonize taxation in the countries, in order to avoid unfair, as they call it, tax competition from countries like Bulgaria to countries like France. This is the thesis of Paris. It is mainly developed by Mr. Macron's team. Of course, I can't miss the work of a whole galaxy of organizations working in this field, "he said.


It is tax competition that is Bulgaria's chance for a better place in the EU, Harsev is convinced, emphasizing that the world is once again entering a recession caused by the pandemic.


Regarding the introduction of progressive taxation, the expert clarified that this "will lead to nothing."


You will not take the money of the rich, it will not happen! They would not be rich if they were so stupid and were unable to optimize their taxation. There are a number of techniques for reducing income taxes. There are also textbooks written on this issue - thick, large, Harsev added.


According to him, people who have solid assets are socially engaged - they donate and their costs are "much more efficient than the state's direct social costs". "That's why there are no rich people in Bulgaria, because this primary communism, which Hadjiiski describes, is so deeply rooted in us," the financier is convinced.


Emil Harsev also commented on the reduction of VAT for restaurateurs, emphasizing that Bulgaria is not the only country that has taken this step.


"The other country that introduced it about a week ago after around two months of discussion was Germany - from a 19% overall rate - to 7%." The restaurant industry has a large percentage of foreign consumers in Bulgaria because it serves tourists, he concluded.

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