BUSINESS

Lenders call for tax hikes on incomes up to 27,000 euros

PROKOPIS HATZINIKOLAOU

TAGS: Taxation

The Finance Ministry has received a proposal from the creditors on the tax reform that provides for hikes on incomes between 8,182 and 27,000 euros per year, and for reductions on middle and high incomes, while the government has proposed tax hikes for incomes of 43,000 euros or more.

The creditors’ proposal speaks of a tax-free ceiling at 8,182 euros and of a new set of rates for the solidarity levy with an additional burden set for incomes in excess of 12,000 euros per annum. Rates are seen ranging from 1.5 to 9 percent, against the government’s plans for a range between 0.7 percent and 10 percent.

The combination of the income tax and the solidarity levy – as proposed by the eurozone and the International Monetary Fund – means that incomes of 200,000 euros or more will see 50 percent return to the state coffers.

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