BUSINESS

New tax measures came into force

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Finance

Taxpayers got a taste of the government’s new tough measures on Wednesday as six new taxes came into force, eating further into household incomes. The prices of most supermarket commodities went up, as did the cost of transport, new cars, beer and pay-TV subscriptions.

And that is just the start, as at the end of the month civil servants, private sector employees and pensioners will see their net salaries and pensions reduced, owing to the increases in social security contributions and income tax.

Property owners will have to pay higher taxes come September, and in October households will face a bigger bill for heating oil.

As if that weren’t enough, the government will raise the taxes on landline and internet use and fuel from January 2017.

Market professionals say is it certain the number of companies shutting down will grow even further in 2016, while expired debts will soar afresh, as many taxpayers and entrepreneurs will be unable to fulfill their tax obligations. The challenge for the government is to make the 3.6 billion euros in tax measures translate into fiscal gains, as experience has shown tax hikes tend to lead to declines in state revenues.

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