Friday October 24, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Gov't mulls introduction of uniform VAT rate next year

By Sotiris Nikas

Finance Minister Gikas Hardouvelis is examining the prospect of introducing a uniform value-added tax rate, while the reintroduction of certain tax breaks is also being considered.

However, the country’s creditor representatives have already demanded that any revisions, especially the revival of any tax breaks, be countered by measures of equal monetary worth to keep fiscal matters balanced.

German Finance Minister Wolfgang Schaeuble spelt out this need during a meeting last week with Greek Development Minister Nikos Dendias, who presented Greece’s case for lower taxes.

Some months back, Prime Minister Antonis Samaras announced his coalition’s intention to reduce certain VAT rates. Market conditions are now considered ripe for these revisions to be put into effect. According to Finance Ministry sources, various alternatives are currently being examined, the objective being to not put public revenues at risk.

The establishment of a uniform VAT rate is believed to be the main objective. Sources believe this would range between 19 and 21 percent, meaning that lower-end VAT rates would increase while higher-end VAT rates would fall.

The 6.5 percent VAT rate currently imposed on pharmaceuticals, hotel accommodation, newspapers, books and theater tickets would be jacked up as a result. Also headed for an increase would be the current 13 percent VAT rate on other necessities, such as food, non-alcoholic beverages, electricity and natural gas. The current 23 percent VAT rate on products and services such as clothing, footwear, telecommunications, furniture, cars, fuel, alcoholic beverages and real estate would decrease.

The Finance Ministry is also believed to be considering the elimination of certain exemptions, such as a 30 percent VAT discount offered on islands.

The International Monetary Fund has also called for a uniform VAT rate in recent years. The IMF has previously described the country’s VAT system as one “full of beneficial rates and exemptions that distort consumer choices.” Greece has pledged to make the VAT revisions in October and implement the changes on January 1, 2015.

ekathimerini.com , Monday August 25, 2014 (21:35)  
Tax revenues up by 1 bln euros in 2nd quarter, public sector wages down
ECB bank assessment to show 6-billion-euro capital gap, Citi says
EU says Turkey´s energy hunt off Cyprus is a a ´serious concern´
ECB vies for third time lucky in European stress tests
Greek private workers´ union calls 24-hour strike for November 27
The country's umbrella union representing workers in the private sector, known by its Greek acronym GSEE, on Friday called a 24-hour strike for November 27 to protest austerity measures bein...
Finance Minister appeals for support for amendments ahead of vote
Finance Minister Gikas Hardouvelis on Friday called on MPs across the political spectrum to support a series of legislative amendments proposed by his ministry, including a recommendation to...
Inside News
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
BASKETBALL
Greens succumb to first loss at Bayern
Panathinaikos’s unbeaten run in all competitions came an end on Thursday as the Greek champion lost 81-75 at Bayern Munich for the Euroleague. Bayern is a team that improves every year, and ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tax revenues up by 1 bln euros in 2nd quarter, public sector wages down
2. ECB bank assessment to show 6-billion-euro capital gap, Citi says
3. EU says Turkey´s energy hunt off Cyprus is a a ´serious concern´
4. Greek private workers´ union calls 24-hour strike for November 27
5. Finance Minister appeals for support for amendments ahead of vote
6. Credit line only open to Greece if it meets economic targets, sources say
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. ECB vies for third time lucky in European stress tests
3. Clocks to go back 1 hour on Sunday
4. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. Cyprus president to be released from hospital on Friday following readmission
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Coalition shooting itself in the foot
4. Greece must stick to reforms, says Schaeuble
5. At least 11 banks to fail European stress tests, three in Greece, report says
6. Cyprus to block Turkey's EU talks after EEZ violation
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.