Experts to draft plan for property tax

Finance Minister Yannis Stournaras set up a special working group on Wednesday to draft a plan for the application of the new Single Property Tax that will apply from 2014, as well for securing the collection of the revenues that have been forecast from it.

According to Stournaras’s timeline, the group has until September 15 to draft its conclusions and present its findings to the minister. The idea is for the plan to be ready by end-September, after negotiations with the country’s creditors have been concluded, so that it can be submitted to Parliament.

The group will have to determine and propose the brackets of the new tax, which according to the original plan will number 33. It will also have to propose how plots of land outside town zones ought to be taxed. At any rate the tax will have to fetch between 2.7 billion and 2.9 billion euros in 2014 and every year thereafter.

The draft report by the representatives of the country’s creditors stresses that the biggest challenge for the tax’s application will be the ability of tax mechanisms to apply the agreed system and efficiently collect the amount anticipated without having to resort to payment via electricity bills again.