Clash with troika on property capital gains tax

By Prokopis Hatzinikolaou

The technical team sent to Greece by the country’s troika of creditors strongly oppose the government’s plans to reduce fines for tax law violations and ease the terms regarding the capital gains tax in property transactions.

Sources say that the technical experts are mainly against the changes to the taxation of capital gains reaped from the sale of properties, while they would be willing to engage in further negotiations on the issue of the fines, although they disagree with the changes proposed regarding the latter.

Finance Ministry officials say that if they make concessions on other issues, the foreign experts may back down on the slashing of fines.

However they are strongly against the new plan the government presented on Wednesday which exempts from the capital gains tax property sellers whose ownership dates to before 1994. If no agreement is reached, the government may table the bill unilaterally.