How the State will take back tax cuts: VAT in accuracy, the “cut” of benefits and the increase in taxable income

Many of what will give “indirectly” through the reductions of wearer Income to employees, professionals and farmers will take the State back through VAT, benefits and… tax revenue increases through the increases given to fees (pensions, wages) highlight analysts at newsit.gr.

Based on the existing institutional framework, the next two years with a peak in 2027, as well as the new measures announced by the prime minister from the TIF Step and specialized yesterday the Ministry of Finance last Saturday, September 6, 2025 is expected to exist. A barrage of not only indirect (due to the reduction of income taxes) but also immediate increases in salaries above all retirees, public and private employees.

Starting, from employees private sector, and more specifically those who are paid the minimum wage (close to 600,000), will see an increase of close to 4.5% in April 2026 (through the predicted adjustment), and an additional increase of about 4.5% in April 2027. 2027 For those who were employed after January 1, 2024, which will lead to horizontal, automatic 10% increase in their earnings…

Cumulatively, that is, the minimum wage will be given by 20%in 2026 – 2027.

State revenue from taxes imposed on a single one over 30 years of age, which is paid the minimum wage in 2027 will increase (due to the increase in taxable earnings) by 47% with the existing regime and 42% compared to 20%.

Consequently, the “loss” of revenue for the State will only reach 5 points or by 1/10 in relation to what you would receive continued by 2027 the existing tax status was valid.

Similar (increasing) will be the course of tax revenue from the imminent increase in pensions by 2.4% from January 1, 2026 (and possibly by a similar percentage on January 1, 2027), by State wages by EUR 358 million in 2026 and € 668 million in 2027.

And not only that, but tax rates in taxpayers’ income over 30 years (but also of professionals and farmers) can be reduced horizontally by 2% by 2026 for incomes above 10,000 euros, but the basic tax of the Greek State, which is no more than a 24% VAT, remains at a high quality of VAT. For example, a citizen of taxable income for 15,000 euros a year will save for € 5,000 (between 10,0001 and 15,000 euros) € 100, as the tax rate on the scale of 10,000 – 20,000 euros will fall from 22%to 20%, but to 100 euros, as they will obviously fall into 24%. Thus the state will get back the 24 euros out of the 100 euros that the citizen will win and lose in the first place (from a reduction in income tax rates).

The same “rule” of absorption of 24% or almost 1/4 of all consumption resulting from indirect, that is, due to the reduction of direct taxes, and direct, that is, due to the increase in earnings, income increases, one could reasonably say that it would apply to almost all of the total measures. Specifically, they amount to EUR 2,685 billion in 2026 and € 4,241 billion and would not be … exaggerated, assuming 24% of them will return to the State through VAT collection (close to EUR 650 million in 2026 and more than € 1 billion in 2027).

And not only that, but through the forthcoming immediate increase in salaries of employees and above all the minimum wages paid, more and more of them They will change, upward, income category, and see the amounts they receive from the allowances (eg children) decrease and thus increase public savings.

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