Friday April 18, 2014 Search
Weather | Athens
15o C
11o 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)  
PPC to issue corporate bond of 500 mln
Primary surplus continued by end-March
Eurobank eyes top Core Tier 1 level in Greece
Tourist spending up 17.3 pct
Greece offers to help find Turkish F-16 lost in 1996
Greece officially offered on Thursday to assist Turkey in its efforts to locate and salvage a Turkish Air Force fighter jet which crashed in the Aegean almost 20 years ago. Greek Defense Min...
Talks lined up in wake of ‘shameful’ soccer scenes
The government has pledged to meet with soccer officials after Easter to tackle unruliness in the game following wild scenes at the Greek Cup semifinal between PAOK and Olympiakos in Thessal...
Inside News
BASKETBALL
Former Red Bourousis wrecks Olympiakos´s hopes for a break
Olympiakos tried harder in Game 2 of the Euroleague play-offs in Spain, and Real Madrid was not as good on Thursday as in Game 1, but the Spaniards still emerged victorious on the night with...
SOCCER
Greek soccer turns fishier than ever
Soccer in Greece reached new lows in scenes unseen since the national team’s triumph in Euro 2004, as PAOK and Olympiakos served up a cup semifinal with PAOK emerging as the winner and the s...
Inside Sports
COMMENTARY
The placebo effect and the economy
Among the greatest mistakes made in the years of Greece’s hard landing is that citizens did not get the chance to sense that aside from austerity and pain the economic adjustment program als...
COMMENTARY
Ukraine is a crisis—but not a Cold War
Given Russia’s annexation of Crimea, the imposition of US and European sanctions, and the potential for more escalation in Ukraine, we are witnessing the most important geopolitical events s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Former Red Bourousis wrecks Olympiakos´s hopes for a break
2. PPC to issue corporate bond of 500 mln
3. Greece offers to help find Turkish F-16 lost in 1996
4. Primary surplus continued by end-March
5. Eurobank eyes top Core Tier 1 level in Greece
6. Tourist spending up 17.3 pct
more news
Today
This Week
1. Greece startup leaders say they can’t break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Seven arrested over Toumba violence
5. National Bank of Greece plans senior unsecured bond sale
6. Greek current account deficit widens in February
Today
This Week
1. Bomb explodes outside Bank of Greece
2. CCTV footage from Nigrita Prison shows signs of inmate torture [Video]
3. Car bomb explodes outside Greek Central Bank building, no one hurt [Update]
4. Samaras sees no need for third bailout
5. Parties start announcing candidates for European Parliament elections
6. Greece readies bond sale as Athens car bomb reminds of upheaval
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.