BUSINESS

PM expected to freeze VAT for post-2006 building licenses

TAGS: Economy, Property

Prime Minister Kyriakos Mitsotakis was on Wednesday night expected to announce the suspension for three years of value added tax payments on sales of properties that were issued construction licenses after 2006.

According to sources, in a  speech at a dinner organized by the Economist magazine, Mitsotakis will announce the relief in a bid to kickstart the sluggish real estate market, draw investments, boost jobs and bolster the incomes of dozens of other professions linked to the construction sector.  

The suspension on the VAT payments is to apply to those who were issued with building licenses after January 1 2006. 

The move is also aimed at invigorating the balance sheets of Greek banks as it would increase the value of secured loans in their books. This would, in turn, make it easier for banks to issue loans to households and businesses. 

The premier is also expected to express his conviction that the primary surplus target of 3.5 percent, that his leftist predecessor Alexis Tsipras committed to, will be reduced from 2021. 

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