Wednesday November 26, 2014 Search
Weather | Athens
12o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Economy stunted by property tax demands, report says

The overtaxation of property is suppressing the potential of an economic recovery, which could have been achieved as far back as the first quarter of 2013 had faulty and detrimental property taxes not been imposed, Alpha Bank highlights in its newly released weekly report.

The bank notes that economic irregularities have been caused by two coinciding property taxes in 2014, these being the existing so-called FAP tax imposed on property valued at over 300,000 euros, and the newly introduced ENFIA property tax, currently undergoing revisions before payments begin, most likely in late September.

In its report, Alpha also notes that the nominal property value levels being used by tax authorities to calculate property taxes are well above actual market values, which is playing a major role in restraining the countrys economic activity.

Economic recovery and greater employment growth are being catalytically obstructed at present by two very significant and crucial taxation errors that are contributing considerably to the further reduction of activity in the real estate market, from levels that are already low, Alpha stresses in its report.

The bank goes on to state that such policies are further damaging taxpayers already dented willingness to cooperate, ultimately depriving the state of significant tax revenue increases.

Alpha estimates that the aforementioned property tax errors deprived the countrys GDP figure of 1.26 percentage points during the first quarter of 2014, as well as a further 0.8 percent in the second quarter.

Despite the concerns expressed in the Alpha report, it does point to some encouraging news on the economic growth front. The bank is forecasting year-on-year GDP growth of between 1.5 and 2 percent in the second half of 2014, following a growth rate of 0.6 percent in the first half of the year.

GDP growth in the second half of 2014 would be supported by factors such as a significant increase in exports of products and services, as well as major gains in the sectors of tourism and shipping, according to the Alpha report.

Meanwhile, in a report of its own, Eurobank highlights that there is no leeway for any fiscal slackening, while adding that the achievement of a primary surplus of 1.5 percent of GDP for 2014 is attainable.

The bank, however, does warn that a series of factors need to be overcome if threats to budget target figures are to be avoided. The threats cited by Eurobank included court decisions obliging salary refunds for certain professional groups, as well as the severe impact on the taxpaying ability of citizens as a result of the deep recession in Greece over the past six years.

ekathimerini.com , Thursday August 21, 2014 (20:55)  
Debtors snap up offer for easier settlements
Belgium gas firm said to be eyeing DESFA
OLP approval paves way for investment in Piraeus
Airport tender exceeds expectations
Hundreds of migrants on crippled ship off Crete
Ships from Greece rushed to help after a crippled freighter crammed with hundreds of migrants floundered for hours Tuesday in gale-force winds and high waves in the Mediterranean Sea, offici...
Policemen suspected of working at Piraeus bar where shooting took place
At least three serving policemen are thought to have been working at the bar in Mikrolimano, Piraeus, where a 31-year-old man opened fire with an AK-47 early on Saturday, resulting in 15 peo...
Inside News
SOCCER
Atletico eyes last 16 berth against Olympiakos
Greek champion Olympiakos faces a tough task if it is to prevent last season's beaten finalist Atletico Madrid sealing its passage into the last 16 of the Champions League at the Vicente Cal...
SOCCER
EPO ends soccer suspension, Super League resumes
Soccer action will resume this weekend after the Super League convened on Monday, elected a new president and alternate president and sent a letter to the soccer federation that assures it t...
Inside Sports
COMMENTARY
Beware of the fallen idols
Akis Tsochatzopoulos, a legendary figure of the Greek socialist movement, a man who came very close to taking over the party that governed the country for half of the time following the fall...
EDITORIAL
The hard truth
The coalition government must tell the truth to the Greek people, even if this entails admitting to mistakes made over the last few months. The countrys citizens are fully aware of how cruc...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Hundreds of migrants on crippled ship off Crete
2. Atletico eyes last 16 berth against Olympiakos
3. Debtors snap up offer for easier settlements
4. Belgium gas firm said to be eyeing DESFA
5. OLP approval paves way for investment in Piraeus
6. Airport tender exceeds expectations
more news
Today
This Week
1. Anastasiades to undergo heart surgery in the US on Dec 4
2. Cargo vessel carrying hundreds of migrants adrift southeast of Crete
3. Trade deficit widens by 8.7 percent during Jan-Sept period, says ELSTAT report
4. Two police officers among 9 arrested for drug trafficking
5. Fraport, Copelouzos offer highest bid for Greek regional airports
6. Stop Mediterranean becoming vast migrant cemetery, Pope tells Europe
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Give Greece a chance
4. Every age has its collaborators
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Scientists expand excavation of ancient Amphipolis
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.