BUSINESS

Debts to the state keep expanding

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Finance

Citizens’ capacity to pay taxes is diminishing by the year, and the latest data from the General Secretariat of Public Revenues show debts to the state on on the rise: In the first quarter of the year taxpayers’ debts expanded by 3.22 billion euros, taking the sum of all debts to the tax authorities to more than 87 billion euros.

At the end of 2012, expired debts to the state had amounted to 55.1 billion, so in just over three years they have soared by 32 billion euros. This is the same amount as the taxes raised in that period.

Market experts say that expired debts to the state created this year will surpass 13.48 billion, the sum of the new debts created throughout 2015. The new taxes, the upcoming value-added tax hikes, the increased tax deposit for the self-employed and enterprises are likely to suffocate the market, they say, making it even harder, if not impossible, for citizens to pay their dues.

Another factor causing major problems to enterprises is the state’s failure to pay its own dues to them.

Hundreds of thousands of taxpayers now break down the payment of their income tax into more installments, either via bank program or through the Finance Ministry’s payment scheme.

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