BUSINESS

Gov’t mulling sweetener for salary workers

PROKOPIS HATZINIKOLAOU

TAGS: Finance

After putting the screws to salary workers by slashing the tax-free ceiling, raising tax rates and the solidarity levy, the government is now examining plans to ease their troubles by giving them the option to pay off their debts to the state in up to 120 tranches.

This plan will be presented to the representatives of the country’s creditors next week in the context of the first post-program review. However, it is likely to be rejected, as the creditors believe that payment schemes do not lead taxpayers back to compliance.

The lenders, and particularly the International Monetary Fund, argue that the more the payment time is distanced from the time the debt was created, the more difficult repayment becomes, as new tax and social security obligations are added in the meantime.

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