BUSINESS

New option for income tax payment

PROKOPIS HATZINIKOLAOU

TAGS: Taxation

The Finance Ministry will offer taxpayers the option of paying their income tax this year in monthly installments, through a law amendment that is set to reach Parliament next week. Sources say the ministry’s aim is to make payment easier for taxpayers by allowing them to break down their dues into smaller monthly amounts as opposed to the bimonthly tranches that the existing system provides for.

The ministry also expects tax receipts to grow this way as it will be easier for taxpayers to make a 150-euro payment per month, for instance, instead of 300 euros at the end of every two-month period.

Of course the change in the payment system must first be approved by the country’s creditors, and that has not happened yet.

A ministry official noted that taxpayers are finding it harder to meet their tax obligations in the last few months of every year, leading to an increase in expired debts to the state during that period. That is because from September to December taxpayers have to pay their income tax, their Single Property Tax (ENFIA) as well as road tax for vehicles. All this adds up to more than 10 billion euros.
 

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