Friday November 28, 2014 Search
Weather | Athens
14o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Loss of VAT revenues costs billions

 Central bank governors report sees tax collection mechanism worsen while evasion increases

By Prokopis Hatzinikolaou and Sotiris Nikas

Greece would have had additional revenues of 9.8 billion euros last year had it matched the average level of value-added tax takings among member states of the Organization for Economic Cooperation and Development, a report by the governor of the Bank of Greece, Giorgos Provopoulos, suggested on Monday.

His report outlines the central banks forecasts for this and next year, while stressing the significance of the government sticking to the streamlining program agreed with the countrys creditors.

The loss of VAT revenues is attributed to the chronic problems of the tax collection mechanism, with Provopoulos stressing that its performance is declining further. The problem is further being exacerbated by increasing tax evasion and the lack of liquidity in the market. Had Greece retained the same VAT revenues as 2008, it would have had an additional 2.3 billion euros last year, he said.

On many an occasion in the past the reform initiatives have come up against the illusion that the system which produced an expensive lifestyle through deficits and debts could be maintained for ever. Nowadays there is no space for such illusions, argued Provopoulos.

The BoG forecasts that the economy will contract by 4.5 percent this year and by 0.5 percent in 2013, before returning to growth in 2014. Harmonized inflation is forecast at 1 percent for this year and 0.5 percent in 2013. Employment will decline by 3 percent this year and the jobless rate will exceed 19 percent.

The cost of labor declined by 2 percent in the whole of the economy last year, after a 3.8 percent decline in 2010, and by 3.9 percent in the business sector, the report says. Productivity remained unchanged and the average wage of salary workers dropped by 3 percent. Salaries across the economy will fall by about 9 percent this year and by a further 7 percent in 2013.

The report also estimates that by the end of the year some 69 to 75 percent of the competitiveness lost in the period 2001-09 will have been recovered, with the rest recovered by the end of 2013.

ekathimerini.com , Monday March 19, 2012 (23:06)  
PPC profits power up in Jan-Sept
Papastratos banking on exports
Saudi group Olayan to enter Costa Navarino
Bank-financed property transactions rise a notch
Seven PASOK MPs voice support for party leader
Seven PASOK MPs on Thursday publicly backed Deputy Prime Minister Evangelos Venizelos and his plans for the party to play a leading role in a broader center-left alliance after ex-leader Geo...
New law could transfer control of unused buildings
Municipalities and private companies may soon get a chance to take over abandoned or empty buildings if a new bill drafted by the Environment Ministry is voted through Parliament. According ...
Inside News
SOCCER
PAOK is one win from Europa Leagues last 32
A late brace by Stefanos Athanasiadis gifted PAOK a precious win at Dynamo Minsk on Thursday, meaning that the Thessaloniki team is one win away from graduating from the group stage of the E...
BASKETBALL
First defeat for Olympiakos in Euroleague
Olympiakos suffered its first Euroleague loss of the season going down 89-70 at Laboral Kutxa on Thursday, although the Greek team remains the favorite to clinch the top spot in its pool. Th...
Inside Sports
COMMENTARY
The presidential election paradox
A few days ago, speaking with a visiting colleague who neither works in Europe nor covers events here, I suddenly felt how much we Greeks take for granted some things that should have worrie...
COMMENTARY
Scraping together the 180 MPs will not be enough
Even if the coalition government was to scrape together the 180-MP majority it needs to elect a new President in the 300-seat House, skeptics say, what will change really? There is one evide...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. PAOK is one win from Europa Leagues last 32
2. First defeat for Olympiakos in Euroleague
3. PPC profits power up in Jan-Sept
4. Papastratos banking on exports
5. Saudi group Olayan to enter Costa Navarino
6. Bank-financed property transactions rise a notch
more news
Today
This Week
1. Greece paralyzed by major strike, flights cancelled
2. Greek diplomat dies in fall under Thai train
3. Greece scrambles to find food, shelter for 700 migrants on crippled ship
4. Chief suspect in Piraeus bar shooting arrested
5. Scraping together the 180 MPs will not be enough
6. Troika talks to continue after failure to wrap up negotiations in Paris
Today
This Week
1. Give Greece a chance
2. Scientists expand excavation of ancient Amphipolis
3. Extremism from a bygone era
4. Greece paralyzed by major strike, flights cancelled
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Coscos Greek unit adds multinational rail-freight client
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.