Sunday October 26, 2014 Search
Weather | Athens
17o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Tax payments eating into deposits

 After a 16.8 pct drop in 2011, account balance is set to drop by a further 10 pct

By Evgenia Tzortzi

Local banks are expecting a further decline in deposits by 10 percent or 17 billion euros within 2012, according to sources, as clients withdraw savings in order to cover their increased tax obligations.

The same sources estimate that some 70 to 80 percent of the outflow from the banking system, which in 2011 amounted to 35.4 billion euros, was channeled into the state coffers through the various tax burdens imposed last year. By contrast, no more than 1 percent of deposits headed abroad.

At the end of 2011 the deposits balance of corporations and households came down to 174.2 billion euros from 209.6 billion at end-2010, posting a 16.8 percent drop on an annual basis. Out of the 174.2 billion euros, 145.4 billion comprised household savings, which had slipped 28.1 billion euros compared to 2010, while corporate deposits amounted to 28.8 billion, down 7.2 billion euros from end-2010. Savings accounts posted a notable 19.9 percent decline on an annual basis.

Bank data point to a fresh outflow of some 2 billion euros in January, as the monthly rise of 1.3 billion in the December balance was deemed temporary and attributed to money gong into accounts due to the Christmas bonus. This quickly evaporated last month, as households paid off their December expenditure conducted through credit cards.

January also saw the deadline for the special property tax paid via electricity bills, while the process of legalizing illegally built houses is set to continue until the end of February.

According to the 2011 state budget execution data, net revenues amounted to 50 billion euros at the end of the year, out of which some 12.8 billion was from income tax receipts, some 1.2 billion from property taxes and 28.6 billion euros from indirect taxes.

Despite the lag observed in the execution of the budget regarding its targets, owing to the deeper-than-anticipated recession, the increase in revenues from a series of new taxes is obvious. For instance, property taxation revenues had come to just 487 million euros in 2010 and almost trebled last year.

ekathimerini.com , Monday February 6, 2012 (21:50)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greeces lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Samaras pledges action after flash floods in Athens
3. Banks need to step up
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. No court hearings for civil cases
6. Nicosia says reforms are bringing results
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greeces closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.