Non -price taxation of the period of intense pressures on the front of inflation In 2022-2023 it functioned as a ‘silent’ tax on their taxpayersignificantly increasing their tax burden, according to a study by Eurobank’s Economic Analysis and Research Unit.
The phenomenon of the “slip of scale”, that is, the automatic transfer of taxpayers to higher tax scales due to the increase in nominal income from inflation, without a corresponding adjustment of the limits, has burdened disproportionately employees and retirees.
The analysis shows that 37% of the increase in total tax burden on income from salaries, pensions and business activity between 2021 and 2023 is due to non -price. If the scale had been fully adapted to inflation, tax revenue from these categories would be 9.2% lower in 2023. Even so, the primary surplus would maintain above 2% of GDP. Partial adjustment scenarios, such as Portuguese, would reduce the loss of half, offering a greater balance between taxpayers’ relief and maintaining fiscal stability.
The study identifies large differences in the impact by source of income. For employees and retirees, almost half the tax increase between 2021 and 2023 came from non -price, while in freelancers the corresponding rate was only 16%. Particularly the middle and upper middle classes of employees suffered the highest proportionate charge. For the lowest 40% of income there would be no benefit from the price, as no tax is already paid.
The abolition of the solidarity levy for employees and retirees also played an important role in the final tax burden. Eurobank estimates that the relief from the abolition completely offsets the burden caused by non -pricing on wages, but with different redistributive consequences: the middle layers would benefit more if the price was chosen instead of the abolition.
Comparison with other European South countries shows that Greece is on average in terms of tax burden on the average unmarried employee, but worse for a married couple with two children, as benefits and discounts are smaller. At the same time, the income threshold for the application of the highest tax rate is the lowest between these countries.
Eurobank proposes to establish a permanent but flexible framework for the tax scale, either universally or targeted, as a structural solution to tackle the slip. Alternatively, it suggests interventions such as reducing rates or reinforcing discounts for specific taxpayer categories. In any case, it considers interventions in direct taxation more compatible with the objectives of the Greek economy than changes in indirect taxation, as they can boost wage labor, savings and attracting high productivity.