As the time for the next TIF diminishes, scenarios for which measures to reduce wearer The Prime Minister will announce, give and take.
As has been made clear by both the Prime Minister and the Minister of Finance, the government at the moment can only do it is to collect proposals for tax and weights reduction, especially for the middle class, and in the summer, when the true image of the “piggy bank” will decide, preparing for them.
After all, as Kyriakos Mitsotakis made clear to his ministers in the recent cabinet, the “low of the bar” of expectations should be kept. At the same time, if all the relief measures being discussed became a sum, then there would be a “account” several billion euros, objectively unrealistic and certainly not budgetable.
Competent sources of the Ministry of Finance, speaking to newsit.gr, clarify the landscape in relation to what the three priorities of the government are and what measures are really discussing.
The same sources make it clear that “heavy” scenarios such as the abolition of ENFIA, even if they have existed as an idea for a moment, does not mean that they are discussed to be implemented.
In relation to the upcoming incorporation of a European VAT exemption directive for small and medium -sized enterprises, they explain that the Directive does not define how each country will form the limit, and therefore there is no open discussion of its change, while reminding it that it is not a decision.
Thus, from all the scenarios for potential tax measures that are currently on the table and are being discussed as possibly announced at the TIF, are:
1. Changes in income taxation from real estate rents
The first and top priority of the government in the list of possible measures is an intervention in the taxation scale of renting new scales, as it is “hearing” the owners’ complaints about the large tax burdens on which they are exposed, thereby enhancing housing offering. It is recalled that income from real estate rents to date are taxed as follows:
- At a rate of 15% up to the annual income level of 12,000 euros.
- At a rate of 35% in the annual income section from 12,001 to 35,000 euros.
- At a rate of 45% in the annual income section of over 35,000 euros.
2. Income Tax Scales
At the level of the general debate, without the same prioritization with rents, the issue of changes in income tax is discussed.
According to reports, the goal here is to relieve the middle class, and in particular those taxpayers who have income between 20,000 and 50,000 euros, with the addition of intermediate tax rates.
The increase in the income threshold is still being considered above which the highest tax rate, which currently amounts to 44% for the part of the income exceeding EUR 40,000, will be applied.
3. Changes in total in the evidence
According to the same competent sources, the financial staff table is strongly discussing the intervention as a whole in evidence, and living and minimal income of freelancers, but emphasizing the first.
The issue has been mentioned many times by the executives of the financial staff. The scenarios that have fallen on the government’s table relate to a 30%reduction.
The government is considering the reduction in the presumption of life, as the officials of the Financial Staff have been openly announced. Thoughts are about the reduction of a 30%living presumptions.
In any case, the same sources point out that everything is a heresy, until July that the government will be able to know Greece’s fiscal course and make the necessary decisions.