Italy is investigating allegations that Pfizer illegally exported more than a billion dollars in profits to avoid paying taxes.
According to sources with knowledge of the situation, the Italian financial police suspect the firm’s local operation near Rome moved $1.2 billion in excess income abroad.
Before the Covid epidemic, the probe began in February and covers the years 2017, 2018, and 2019.
Pfizer is accused of moving the funds to foreign subsidiaries affiliated with its Delaware and Netherlands locations.
During this period, profits could be subject to Italy’s 26% corporate tax.
The finance department is presently conducting investigations, and Pfizer has not yet been informed of their results, according to Bloomberg sources.
Pfizer, based in New York, stated in a statement that it “complies” with all Italian laws and regulations.
Once the government exhausts the quantities it has already purchased, Pfizer will increase the price of a single dose of the vaccine, which some experts estimate costs $1.18 to produce, to as much as $130.
The Italian financial police declined to comment, but the audits are believed to be administrative rather than criminal in nature.
Pfizer has not yet been told of the results.
The business issued the following statement: ‘The Italian tax authorities routinely investigate Pfizer taxes, and Pfizer cooperates with these audits and investigations.
Pfizer conforms with Italy’s tax rules and regulations.
Giorgia Meloni, the incoming Italian prime minister, stated in Parliament yesterday that under her administration, the tax authorities will place a greater emphasis on multinational corporations.
Globally, Pfizer produced $48 billion in earnings over the three years under examination, according to 2017 and 2018 financial statements.
Its Italian branch employs over 2,000 individuals.
The company operates a facility in the central Marche region, where it manufactures medications for cancer and neurological illnesses.
Additionally, it operates a factory in Sicily that manufactures sterile injectable medications such as antibiotics.
Pfizer was also one of the major pandemic winners.
The business anticipates overall revenue of $102 billion this year, with the vaccine and Paxlovid, an antiviral medication approved by the White House for the treatment of Covid, leading the way.
The leaders of the company have also profited significantly from this venture. In 2021 and 2022, CEO Albert Bourla is anticipated to earn roughly $50 million.
Dr. Ugur Sahin, the creator of the Covid vaccine and CEO of Pfizer’s German partner BioNTech, is one of nine ‘vaccine millionaires’ who emerged during the pandemic.
People’s Vaccination Alliance (PVA), a non-profit organization that advocates for vaccine equity, referred to the price increase as “daylight robbery.”
Last week, Pfizer stated that its shot would cost $130. The pricing will go into effect in the United States when the government’s supply of shots runs out.
Julia Kosgei, the policy advisor to PVA, stated in a statement, “Experts estimate that Pfizer’s vaccine costs just $1.18 per dosage to produce.”
A price of $130 per dose would indicate a markup of over 10,000%. This is daytime theft.
Governments must not watch idly by as multinational corporations like Pfizer hold the globe hostage with a worldwide epidemic.
Until the beginning of 2023, all Americans, regardless of insurance status, can access immunizations for free.
The federal government purchases the injections from Pfizer at a cost of approximately $20 per dose and then distributes them to healthcare practitioners across the nation.
The Biden Administration was unable to persuade Congress to approve $15 billion to continue purchasing vaccinations and treatments into the following year.
According to a Reuters article, Pfizer claims it will have difficulty fulfilling sales targets this year without increasing the price of its injections.
