soon season hits its farmers hard. we'll discuss them, knock on effects for the country's economy, plus the state of your business on robots and berlin. welcome to the program. normal service resumes measures to cut travel costs, but germans including a $9.00, your monthly public transport tickets have come to an end after 3 months, along with the reduction in fuel tax, the policies aimed to cushion the impact of rising pachel and diesel prices. now the approach to handling knock on effects of the war in ukraine has set a precedent for other european nations. among them, spain, which is introducing free monthly rail passes for many routes around the country, funded by a tax on excess profits. at madrid's grand 19th century, a torture railway station 26 year old jennifer bernard keentonia and her sister became the happy owners of travel passes. she says it will save her around $80.00 to $90.00 euros a month. gabby?

no, i can without a bit of money and i would like it to be permanent because it would make things less expensive and we can move around more than $1.00 if you anything that benefit citizens is good. of course, in terms of the economic and political situation, it helps for us. it's a huge benefit and we're thankful for that. asian. one minute, you're almost half a 1000000 people have already pre ordered the free transport cards and state own railway operate ren faire, expects the scheme which runs until year end to result in 75000000 free railway journeys. it will cost $221000000.00 euros. and as part of the latest aid package to mitigate price rises, an economist alex cobham is chief executive of the tax justice network. he joins me from oxford in the u. k. thanks for being with us here on the to be a business. so i'll win for taxes the right way to be funding inflation really seems like chief of public transport. yeah, absolutely. and, you know,

winful taxes are about taking a bit of the money back from companies that are making completely excess profits. well, the rest of the economy is suffering in order to fund some relief during that moment . just a long term policy. but for the short term, when we really need it, it's pretty much the best option that we have is one of the issues with when for taxes of it is subjective, who is making excessive profits? how do you decide which company's profits are there too much? well, no, this is one of the julie's of you know, corporate income taxes are pretty much the most efficient tax we have because what they're doing, they're not taxing activity. they taxing the profit that results. and that means that you don't change anyone's incentives. companies still have the incentive to producing the same point and maximize their profits is just that you'll distributing some of that profit back to the state for the benefit to the rest of

us rather than to shareholders. now, a winful thanks does exactly that. but with a bit more focus, so it says in these moments where the profits are completely excessive, we're going to take a bit more of that. and that means that you can construct very precise measures of what that profit is when it's excessive. so you say for example, the return on capital has gone from being 5 percent to being 20 percent. that excess 15 percent return, or whatever it may be. we're going to take a higher share of that in taxes, in order to fund the kind of relief that people need in these moments. so you can apply this very efficiently, very fairly and without distorting the incentives that companies things. but do countries that entities when for taxes like in the, in the you can, as we've been hearing about spain, did they not risk deterring investment in their own economies from big businesses? you might, at some point stand to make very large profits oversee. that's what the big

businesses and their lobbyist want you to think, you know, don't scare the whole system or anything that might put off for business investment . but actually, you know, they, you know, and we know that that's not how it works. what really matters for business investment is the stability as they look ahead. is this a country with reasonable economic prospects, or is this a country that is likely to be in chaos, to be very unstable? as long as you're, when for tax is clearly part of a strategy where the government is committed to stabilizing the economy, to protecting people and their ability to consume in the future, which is where economic demand comes from. then actually when full taxes should be supportive of the conditions for future investment and as a win for texas because the taxes on profits in particular excess profits, they don't undermine or change incentives to invest because it's still going to be the right investment decision that maximizes profits, even if

a bigger share of those profits is going to be shared with the state. just briefly, alex, we've been talking today about the 9. your ticket here in germany, which i think is, has caused some headlines around the world. this monthly ticket, the cost just 9, yours with public transport. does that appeal to you as a, as a policy? is that the right thing to be doing? it doesn't, it seems exactly the sort of response that we should be looking at right now cuz it delivers in a number of areas. first of all, it's broadly progressive. you know, everyone may benefit, but actually it's people in lowest incomes for whom that benefit is going to feel and be experienced as the most important. so that's great. everyone gets something . it strengthens this kind of social contract since we have, but the benefits of progressively distributed. and then secondly, is also responding to the climate crisis. you know that the numbers that have been coming out about the emissions saved by this measure are really quite striking. and you know, they tell us that public transport is kind of, you know, almost

a silver bullet. it's exactly what we should be investing in both in these moments of crisis. and in this, the longer term climate crisis that we're facing. ok, alex cover from the tax justice network in the u. k. thank you very much for joining us. my trip. not some of the other global business stories making the news. lufthansa says it's canceling $800.00 flights after pilots now strike the friday. the pilots union says, seeking a 5.5 percent wage increase by the end of the year, automatic adjustment for inflation and changes to the pay scale driven outline says it's already made a fair pay off. it's not just parent company says the messaging app will be cutting 20 percent of it. staff staff, a struggle with competition from tech talking is facing a steep decline and had sales in july at last more than $400000000.00. that chat says it will focus on mentored reality. and the international monetary fund has

reached a deal with ser lanka, bail out package of about $2900000000.00 is meant to help the country out of a crippling economic crisis that cause civil unrest and topples it toppled as president staying in that region. and devastating floods have left much of pakistan under water and left more than a 1000 people dead. they see as unusually extreme monsoon season is set to leave a lasting mark on the countries already struggling economy. pakistani farm as will be among those left coping with the after effects this landscape is a far cry from what it used to be after recent monsoon rains, devastated crops and livelihoods i do garofalo of the day crop is harvested once a year that we worked very hard and spent a lot of money on the farm this year, and hope for a very good crop and to earn a good profit from us. by the way, these rains ruined all our hopes that nothing could be saved about than i am. if

high dollar pakistan is the 5th largest producer of dates, the growers associations has at least 80 percent of the harvest has been damaged so far. and it's not just dates. cotton crops, rice and sugar cane have also been destroyed, threatening the country's food security. the floods destroyed houses, roads, bridges, and communication networks to preliminary estimates by officials show the country has suffered damages were a $5500000000.00 i hadn't seen any, any destruction or devastation of this scale. i find it very difficult to put into words the phraseology that we use to whether it's monsoon rains, or flooding doesn't quite seem to encapsulate the ongoing devastation and

disaster that we're still witnessing. the flooding could not have come at a worse time for the islamic country, where the economy has already been in free fall facing high inflation, corruption on a rising account deficit. when the rainfall stops reconstruction will begin. but for farmers like day crop growers, their nightmare will continue next year as flooded orchards weaken the trees resulting in another low yield next year or less. get more in this from our correspondent terry carter care joins a strong deli, a neighboring india, chary, clearly in a, in enormous human cost. but so the flooding in pakistan, what sort of a impact is it having on the economy that absolutely robert, these floods have caused a devastating impact on back a son over 33000000 people are said to have been affected right now. and even as we

speak, the flood waters are yet to receive. so of a holistic assessment is yet to be made. in fact, the federal ministers have said that it would be too early to make a holistic assessment off the economic loss. but a preliminary assessment for that figure to somewhere around $10000000000.00. apart from that, there are millions of acres of crops that have been lost. so in the near future, there is a start possibility of an acute food shortage. and pakistan was already having enormous economic problems before the flooding came along. i was already seeking a bail out from the international monetary fund as the i m f. seem like it's going to step in to support pakistan now. well, yes, let has already happened. robert lee, i am of has a announced immediate release offer this fund. this is about $1700000000.00 a long standing negotiations were being held between pakistan and i'm a for this and this was released 2 days ago. this will come as

a breeder for the federal government because it has been struggling with struggling because of a many problems. 40 to 45 percent inflation of extremely low foreigners foreign reserve foreign exchange reserves, current account deficit multiple against getting her level of problems have been affecting the bach, sunny economy. and now the federal government is really hoping that this dispersal from the i m f would come in handy rob. and what about pakistan's neighbors in the region? no, slayer states, adversary. i suppose india is their support coming from other countries for pakistan? well yes, definitely. some 8 has already arrived, saudi arabia and cut out, i believe, have each announced her an aid of about $3000000000.00. and you way has announced her plays another $1000000000.00 indian prime minister x a did express his concern and extended whatever support all of that boxed under my

desire. but then india is yet to announce any kind of assistance of buck hassan government has also been beating to the united nations to launch an international sort of a flash, a beam. so that whatever funding that that could come august, any government could use that in relief. and rehabilitation efforts, and after that, some reconstruction, massive reconstruction efforts are also required. rob. okay, tara cartucker. thank you so much for the update. that's all for me. the business team. mm. with

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