Shortly before the implementation of the measures announced by the TIF Prime Minister Kyriakos Mitsotakis begins, the discussion for the next package has started relief, a package that is nothing more than what remains to be done in relation to the ND election program or, to be precise, most of them.
The Maximos Palace, they want to go to the polls, whenever they take place, with most of the promises being fulfilled. They know, of course, that the conditions within the 4 years were not ideal, in order to proceed with tax reliefs without obstacles.
But now they have a strong ally in the government – rather unexpectedly in terms of tension. And that is called development. The pace is well above expectations. In the middle of the year, the international companies saw the GDP growth rate a little over 3%, then a little over 5% and now the estimates are around 8%.
Any fiscal space will automatically mean new relief. In the government camp they know what they want to do, but they do not know when this can be done, although they are convinced that some of them will be implemented within 2022.
Let’s see what these measures are:
- Extension and permanent abolition of the special solidarity contribution for the private and public sector, as well as pensioners.
- Further average weighting of ENFIA by 8%. This percentage will complement the 22% reduction that has already taken place in 2019, so that the total reduction reaches 30%.
- Reduction of the tax advance for businesses from 100% to 80% and for the rest doing business to 55%.
- Reduction of VAT rates. It is noted that the government’s pre-election commitment is two VAT rates at 22% and 11%, over a period of four years. Also, the total taxation in the tourist package to be set at 11%.
- New reduction of insurance contributions by 1.1 percentage points. The goal is to achieve a cumulative reduction of up to 5 percentage points by 2023, so that the contributions reach 35.56%.
- “Haircut” to 50% in the first phase and later complete abolition of the feat fee.
- Additional reduction of the corporate tax rate from 22% to 20%.
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