BUSINESS

Debts to state nearly doubled over five years

PROKOPIS HATZINIKOLAOU

TAGS: Finance, Taxation

High income taxation rates, combined with “extraordinary” tax levies, such as the solidarity levy and the Single Property Tax (ENFIA), have exhausted Greek households, many of which are in a losing battle with the taxman as they helplessly watch their debts increase.

Debts to the tax authorities have almost doubled since 2013, soaring to 103.1 billion in September 2018 from 53.01 billion euros in 2013 – a rise of 50.59 billion euros.

In the first nine months of this year 7.84 billion euros of debts was added to the existing pile, which illustrates the inability of households and corporations to continue to meet their tax obligations following years of austerity.

The amount of arrears would have been even higher had it not been for the collection of some 25 billion euros through confiscations and various restructuring plans. The number of state debtors has climbed to 4.3 million, compared to around 1 million in 2010. Even so, the government continues to implement a policy of overtaxation while opting for handout measure packages ahead of the general election in 2019, with no sign of any growth-oriented moves to help the Greek economy expand.
 

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