Tuesday Jul 29, 2014 Search
Weather | Athens
31o C
24o 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. Greece’s 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 ASE’s 107 percent rebound from June’s 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, it’s 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.

Greece’s 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 Greece’s economic adjustment program by the European Commission, the country’s 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)  
Taxpayers can designate account protected from seizures to cover state debts
BoC eyes bond sale after raising 1 bln euros
Bourse benchmark drops below 1,200-point level again
Greek dairy company Fage wins yogurt case in Britain
Troika review in Athens unaffected by Paris meeting
A meeting between troika and Greek government officials in Paris at the beginning of September does not mean that representatives of Greece’s lenders will not then travel to Athens to carry ...
Soldiers set to sue over wages
Members of the armed forces and emergency services look set to take legal action to have their wages restored to pre-2012 levels after the government suggested it would not raise their pay t...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Troika review in Athens unaffected by Paris meeting
2. Soldiers set to sue over wages
3. Taxpayers can designate account protected from seizures to cover state debts
4. Nimetz in Athens without concrete ideas on name dispute
5. BoC eyes bond sale after raising 1 bln euros
6. MPs question whether ELSTAT chief should stay
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. World’s largest solar boat on Greek mission
4. Venizelos to meet Nimetz in Athens
5. Tsipras discusses Cyprus with Anastasiades in Athens
6. More than 120,000 households to receive special benefit
Today
This Week
1. Climber dies in Mount Olympus fall
2. Unequal after death
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.