Friday August 22, 2014 Search
Weather | Athens
32o C
25o 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)  
Report: Greek banks sturdily positioned
Economy stunted by property tax demands, report says
Primary surplus exceeds January-July target figure
Ryanair in Cyprus Airways talks
KEELPNO blames stomach bug for sick tourists on Rhodes
The Center for Disease Control and Prevention (KEELPNO) on Thursday contradicted foreign press reports according to which hundreds of tourists suffered food poisoning at a hotel on Rhodes ea...
KEPs to issue new and replacement driving licenses
Greeks and foreigners living in Greece will no longer have to queue up at the Transport Ministry to get new or replacement driving licenses as the government decided yesterday that Citizen S...
Inside News
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
ATHLETICS
Long jumper Tsatoumas takes Greece´s second silver at European Championships
Greece won its second medal at the European Athletics Championships in Zurich, Switzerland, on Sunday with Louis Tsatoumas coming second in the long jump. Briton Greg Rutherford won the even...
Inside Sports
COMMENTARY
Self-destructing political system
It finally seemed as if we had found some peace of mind. The vast majority of Greek MPs chose to abstain from festivities on August 15, also known as Assumption Day, thus sparing us from the...
EDITORIAL
Welcome movement
Many have spoken about the need to spur economic growth in this debt-wracked country, but very few officials seem to actually be doing anything meaningful to make this happen. Recent weeks h...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. KEELPNO blames stomach bug for sick tourists on Rhodes
2. Report: Greek banks sturdily positioned
3. Economy stunted by property tax demands, report says
4. Primary surplus exceeds January-July target figure
5. KEPs to issue new and replacement driving licenses
6. EU funds reserved for waste facilities in northern Greece
more news
Today
This Week
1. Merkel cites euro’s ‘construction flaws’ as economy sputters
2. Brussels warns Greece over plans to allow construction near Korinos beach
3. Second man held over double murder in Mani
4. Avramopoulos in US for talks with Hagel on possible Greek role in peace missions
5. Eurozone business growth slows in July, prices fall: PMI
6. Inspectors visit Rhodes to probe reports of mass food poisoning of hotel guests
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canada’s fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Ministry sys ‘no’ to debt collection agencies
6. Karatzaferis eyes ND-LAOS alliance to stop Tsipras
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.