Extraordinary Contribution, Tax Shelter, Single VAT Reconsidered
The Finance Ministry attempts to raise revenues by launching new tax measures, as the situation remains dramatic, despite minor signs of improvement. According to estimates, the deviation from annual targets will be significant at the end of the year.
In this light, the leadership of the economic team has ressurected measures, which it had rejected a few months ago:
-The key scenario concerns the permanent reduction of tax shelter to €6,000, with the alternative of €8,000 for all taxpayers. In this case, the proposed tax rate for the level up to €12,000 will be 10% or slightly higher.
-Imposition of a new extraordinary contribution. This measure will be imposed to high incomers or free-lancers, or owners of large property.
-Introduction of one, single VAT. It would be formed between 18% and 20%, resulting in significant price increases in hundreds of essential products, which are currently taxed at 13%. Tourist services and possibly drugs, taxed at 6.5% would be excluded.
-Any thoughts of postponing the doubling of heating oil tax rate will be rejected, and the measure will apply next autumn.
-Abolition or reduction of four hundred and more tax cuts.
However, it should be noted that most of the measures had been previously rejected by the troika, as it opposes against extraordinary taxes. According to IMF official Poul Thomsen, taxes should not be further increased.
(capital.gr)