BUSINESS

Tax-heavy months lie ahead

TAGS: Taxation

Greek taxpayers and enterprises will have to pay taxes adding up to more than 10 billion euros for their property assets, cars, last year’s incomes, road tax and the increased solidarity levy in the months up until the end of the year.

Most of those taxes are due during the summer months, up until the end of September. When indirect taxes are also added, the amount that individuals and businesses will have to pay the state by the end of December climbs to some 24 billion euros.

This year’s income tax clearance is particularly hard on those with annual incomes in excess of 35,000 euros, as on average they will pay 40 percent more tax than two years ago. When the increased social security contributions are factored in, the additional burden amounts to 50-60 percent. That is likely to prove decisive for the state coffers as a large part of the taxes due may end up in the huge pool of overdue arrears.

From end-July up to January 2019, taxpayers will need to dig deep in their pockets every month to pay the state, whereas if this process had started in February the spreading of dues would have been greater and more affordable.

The taxpaying process begins at the end of this month with the first tranche of the tax for the 2017 incomes. In total, 2.5 million taxpayers will have to pay a sum of 3.5 billion euros in three installments. Then, in September, the Single Property Tax (ENFIA) enters the fray, with the first of five tranches to be paid by end-January 2019. The amount demanded will likely come to 3.2 billion euros. Another 800 million euros from expired debt settlements is due by year-end, while December will see the payment of some 1.2 billion euros toward road tax.

Hellenic Confederation of Commerce and Enterprises (ESEE) head Vassilis Korkidis notes that “the new expired debts from taxes in the first five months of the year came to almost 4.8 billion euros. Once again it is confirmed that overtaxation not only kills off the economy, but it also kills taxation itself.”

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