BUSINESS

Direct taxes make up bigger share of GDP

PROKOPIS HATZINIKOLAOU

TAGS: Economy, Taxation

Despite the economy’s 25 percent contraction over the years of the economic crisis, the increase in the number of unemployed to 1 million, and the drop in pensions, state revenues from direct taxation remain at the same level in absolute figures. In fact, they are currently slightly higher than in 2010.

The entire tax base has been battered by overtaxation in recent years, while the middle classes have all but vanished due to the ever increasing tax burden imposed on them by the government, particularly the current administration that has transferred the tax load onto taxpayers with annual incomes of around 25,000-30,000 euros.

Figures show that revenues from direct taxation came to 20.22 billion euros in 2010, while this year they are projected to come to 20.76 billion. In 2010 revenues from income tax, property taxes etc amounted to 9 percent of gross domestic product, while in 2018 this figure has jumped to 11.3 percent of GDP, due to overtaxation.

The situation as regards the heavy taxes is clearly reflected in the tax slips that self-employed professionals have received, causing them such grief that many of them are wondering whether there is any point in continuing to work, or if they should just claim unemployment benefits.

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