Friday February 27, 2015 Search
Weather | Athens
11o C
6o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Plan for income tax overhaul

By Sotiris Nikas

The Finance Ministry is testing a plan with groundbreaking changes in the taxation of incomes as part of an overhaul of the revenue-raising system, according to sources.

The idea is said to provide for the deduction from taxable income of all expenses except those concerning the acquisition of property assets, and the application of rates between 25 and 40 percent on the sum remaining.

Initial projections indicate that the lower income tax rates will indeed lead to an increase in revenues from other sources.

The plan provides that taxpayers will deduct from their annual incomes the full amounts of the following expenses:

I) Consumer goods, services, toll charges, car insurance premiums and all utility bills.

II) Those that are presently deductible only at 10 percent, such as rents, hospital expenses, medical visits and tests, private school fees and life insurance premiums.

In this way, the ministry considers that the tax code will be greatly simplified and the tax burden will be shared out more fairly. A likely reduction in revenues from income taxation is expected to be offset by two other collateral impacts:

First, an increase in taxes from incomes declared by businesses and the self-employed that today conceal a large part of their incomes. It is reasonable to believe that all consumers will insist on receiving receipts for all purchases and services rendered. According to a recent study by the University of Chicago, Greek doctors conceal an average income of 29,000 euros annually.

Secondly, an increase in VAT revenue, since businesspeople will be forced to issue a much larger number of receipts. Given that the lowest income tax rate will be 25 percent, consumers will have no interest in not paying VAT which is 23 percent.

The operation of the new system would depend on the direct electronic connection of sale points with the tax department.

ekathimerini.com , Friday August 24, 2012 (21:03)  
Minister says he hopes that ENFIA ends
Postponing an IMF tranche ‘means default’
Stournaras says deal must be completed
Greek bank deposits plunge to lowest point since 2005
Gov’t raises concern over payment to IMF in March
The Euro Working Group discussed Greece’s imminent funding problems on Thursday amid mounting concern about how the country will meet its obligations next months. Earlier in the day, Ministe...
More than 300 migrants released
More immigrants and asylum seekers were released from detention centers across Greece on Thursday as the government seeks to make good on a campaign pledge to close down such facilities, cit...
Inside News
SOCCER
Ten-man Olympiakos couldn´t overcome Dnipro
Olympiakos drew 2-2 with Dnipro from Ukraine at home on Thursday, playing almost the entire second half with a man down, to bow out of the Europa League, despite facing an opponent which on ...
BASKETBALL
Greens lose at Maccabi but preserve head-to-head advantage
Panathinaikos suffered its third loss in eight games at the second stage of the Euroleague going down 73-70 at Maccabi Tel Aviv on Thursday, but has preserved its better head-to-head record ...
Inside Sports
COMMENTARY
A breath of opportunity
We are still living in the Greece we know: The government is struggling to explain its retreat in the face of our creditors, the opposition (including dissidents in SYRIZA) smells blood, we ...
ANALYSIS
Having it both ways: Greece´s doublespeak to Brussels and voters
Gingerly treading between its anti-austerity promises to voters and its pledges to skeptical international creditors, Greece's new radical government is resorting to doublespeak to keep ever...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ten-man Olympiakos couldn´t overcome Dnipro
2. Greens lose at Maccabi but preserve head-to-head advantage
3. Minister says he hopes that ENFIA ends
4. Postponing an IMF tranche ‘means default’
5. Stournaras says deal must be completed
6. Panathinaikos deducted the three points earned at the derby
more news
Today
This Week
1. The unlikely winners of Greece's surrender on euro
2. SYRIZA feeling the pain
3. Turkish jets violate Greek air space
4. Schaeuble tells MPs Varoufakis 'strains' EU solidarity
5. Merkel faces stepped-up dissent on Greek bailout among lawmakers
6. Greek bank deposits return after bailout extension
Today
This Week
1. Greece prepares extension request for eurozone approval
2. Time for Alexis Tsipras to keep his nerve
3. Stubborn but not almighty
4. Greek bailout deal faces review by euro officials next week
5. Greece says eurozone deal won time as cash bled from banks
6. The ignorance of the West about the culture of Islam
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.