Sunday March 29, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Capital-gains tax threatens Greek stocks, regulator says

The rally in Greek shares that has pushed the ASE Index to a 16-month high may be threatened by plans to introduce a capital-gains tax on equities to help narrow the budget deficit, regulators and investor groups said.

We have had discussions with the ministry insisting that, in this period, it is counterproductive to have both a capital- gains tax and the already existing tax on the stock exchange, Constantinos Botopoulos, chairman of the Hellenic Capital Markets Commission, which regulates the stock exchange, said in a telephone interview.

Equities will be subject to a 20 percent levy on gains in capital in addition to an existing 0.2 percent financial- transaction tariff from April 1, if parliament approves the measures in a vote expected to be held tomorrow. Greeces international creditors have demanded 2.5 billion euros ($3.3 billion) of additional taxes in 2013 on top of 9 billion euros of spending cuts as conditions for releasing bailout funds.

The proposals risk stalling the ASEs 107 percent rebound from Junes two-decade low, Kimon Volikas, president of the Hellenic Fund and Asset Management Association, said. The benchmark gauge for Greek shares rose 0.4 percent to 983.91 yesterday, the highest level since Aug. 29, 2011.

Capital-gains taxation is something that happens all over the world, its not something new, Volikas said. But we are in a different phase of our economic evolution compared to other countries. What we need is to motivate investment. The timing is completely wrong.

In the US, investors face taxes of as much as 23.8 percent on long-term capital gains, depending on their income. The UK has a top rate of 28 percent.

Greeces capital-gains duties may be postponed due to opposition from investor groups, Capital.gr reported Wednesday, without citing anyone. The finance ministry will examine alternative proposals ahead of another tax bill expected to be introduced in the next few months, the Greek website said. The tax has been repeatedly delayed since it was proposed in 2007.

Surging borrowing costs forced Greece to accept two bailouts from the European Union and International Monetary Fund. Budget cuts imposed by the rescue deal have helped drive the country into the worst recession since World War II.

According to the latest review of Greeces economic adjustment program by the European Commission, the countrys deficit is estimated to be 4.6 percent of gross domestic product in 2013. The economy is forecast to contract 4.2 percent, followed by growth of 0.6 percent in 2014, the Commission data show. [Bloomberg]

ekathimerini.com , Thursday Jan 10, 2013 (10:14)  
Fitch downgrades Greece amid bailout uncertainty
Bank accounts continue to bleed
Hania and Athens are the top picks for Easter visitors
Landlords to pay tax on unpaid rent
Disabled convicts to be freed early
A bill allowing prisoners with serious disabilities to be released early is due to be submitted to Parliament next week despite objections from some opposition parties. The would-be legislat...
Greek energy minister starts two-day visit to Russia on Monday
Energy Minister Panayiotis Lafazanis is due to meet his Russian counterpart Alexander Novak and the chief executive of energy giant Gazprom, Alexey Miller, in Moscow on Monday. Lafazaniss m...
Inside News
BASKETBALL
Greens live dangerously in Istanbul
Panathinaikos played with fire in Istanbul, but still managed to beat Galatasaray 86-84 on Friday and climb to the third sport of its group two games before the end of the Euroleague top-16....
SOCCER
Greek federation backs injured Holebas
The Greek soccer federation on Friday insisted that international defender Jose Holebas had been dropped from team training in Austria because of injury and not for any other reason. Media r...
Inside Sports
COMMENTARY
Lets change the subject
Lets talk about the weather. The cloudy skies, the rain, storms and humidity, the overall heavy atmosphere. Its better to think of that than politics and politicians, whatever cuts they ma...
EDITORIAL
Too little, too late?
Many of the measures that are rumored to comprise part of the list that the Greek government is expected to submit to the European Commission, European Central Bank and the International Mon...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Disabled convicts to be freed early
2. Greek energy minister starts two-day visit to Russia on Monday
3. Opposition tells Tsipras to get control of his party
4. Vitsentzos Kornaros passenger ferry finally on its way
5. Foreign laborer dies after falling from 3rd floor of Iraklio building
6. A 5.3 Richter quake rattles area between Crete and Kasos
more news
Today
This Week
1. Fitch downgrades Greece amid bailout uncertainty
2. Opposition tells Tsipras to get control of his party
3. Let's change the subject
4. Greek energy minister starts two-day visit to Russia on Monday
5. Too little, too late?
6. Disabled convicts to be freed early
Today
This Week
1. Next Monday is D-Day for state funds
2. PM faces Merkel amid race to detail reforms
3. Some more equal than others
4. Greece to present reforms by Monday, says gov't spokesman [Update]
5. Looking at the Chinese model
6. Greece optimistic on deal with euro area next week
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.