Monday February 2, 2015 Search
Weather | Athens
16o C
13o 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 country’s 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 country’s 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)  
Piraeus port U-turn will not hurt China investment: analysts
Cash may dry up earlier than thought
EU rift, cash flow and NPLs worry bankers
Economic activity still on hold in anticipation of government program
Deputy PM Dragasakis confident ECB will not cut liquidity for Greek banks
Greek Deputy Prime Minister Yannis Dragasakis dismissed fears that the ECB may cut vital liquidity support to Greek banks if it fails to agree with international creditors, saying the new go...
Varoufakis counting on ECB as Sapin says Greece needs new contract with eurozone
Greece is counting on the European Central Bank to maintain a financial lifeline while the week-old government in Athens negotiates new terms on its international bailout package, Finance Mi...
Inside News
SOCCER
Reds stretch lead as Panetolikos upsets PAOK
Panetolikos’s surprise win at Toumba over PAOK on Saturday allowed Olympiakos to open its lead at the top of the Super League table to five points, one week before the Reds’ visit to Thessal...
TRACK & FIELD
Three Greek athletes earn tickets to Prague
Greek track and field enjoyed an exceptionally good weekend of performances by local athletes at various indoor meetings, with three of them earning a ticket to the European Indoor Champions...
Inside Sports
COMMENTARY
The dogma and the command center
We have reached a critical juncture. We have a new, inexperienced government trying to see if “the great negotiations” discussed by everyone, be they from the left or the right, on TV over t...
EDITORIAL
Silence will not be forgiven
It’s time for a turn toward realism, caution and logic. The negotiations with our partners and lenders must be concluded swiftly before the remaining healthy parts of the country’s productiv...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Deputy PM Dragasakis confident ECB will not cut liquidity for Greek banks
2. Reds stretch lead as Panetolikos upsets PAOK
3. Three Greek athletes earn tickets to Prague
4. Varoufakis counting on ECB as Sapin says Greece needs new contract with eurozone
5. Piraeus port U-turn will not hurt China investment: analysts
6. Cash may dry up earlier than thought
more news
Today
This Week
1. Dijsselbloem says Greece has to decide how to move ahead
2. Greece shakes Europe's political kaleidoscope: expect the unexpected
3. France open to easing Greek debt burden, says finance minister
4. The dogma and the command center
5. Greece offers olive branch to seek allies
6. Poll shows most Germans want Greece to stay in eurozone
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. EU must accept that Greek debt relief is inevitable
4. SYRIZA's win will test institutions
5. Greek Elections 2015: The day after | LIVE
6. Athens may veto further EU sanctions against Russia
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.