BUSINESS

Tax inequality gets greater every year

THANOS TSIROS

TAGS: Taxation

The pool of businesses and households in Greece that is being called on to pay ever-increasing taxes keeps shrinking so that 19 percent of taxpayers are responsible for covering 90 percent of the overall income tax.

At the same time, 4.5 percent of businesses are paying 83 percent of the country’s corporate tax, and 33 percent of property owners pay 66 percent of the Single Property Tax (ENFIA).

These three main taxes from which the Greek state expects every year to collect over 15 billion euros (almost 3 billion from ENFIA, 8 billion from the income tax and around 4 billion from corporate tax) relies on just 1.7 taxpayers and 11,500 companies. In practical terms, 19 percent of tax registration numbers – individuals or corporations – account for 80 percent of Greek taxes.

Year after the year, the number of the taxman’s good customers is going down, as is also reflected in the course of tax revenues. Data from the Single Social Security Entity (EFKA) reveal that last year saw a fresh reduction in the number of private sector employees with gross monthly salaries over 2,000 euros. Just 195,988 private workers exceeded that level, which amounts to 1,400 euros net, while in 2014 they numbered around 200,000 and in 2009 they had reached 291,606.

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