The course of tax revenues in August is considered satisfactory, as they came in only 0.9%, or 41 million euros, below the original budget target, despite the extension of the deadline for the payment of the first two income tax tranches until Friday.
The government cites the 16% increase in gross investments over the year’s first half compared to the same period two years earlier – i.e. before the pandemic – to illustrate that its policy has met with a positive response by businesses.
The government is preparing a formula for the concession of assets belonging to the Hellenic Public Properties Company (ETAD) as housing for young couples on low incomes.
Prime Minister Kyriakos Mitsotakis will announce a package of measures on Saturday aimed at easing the pressure on middle and low income earners from the increase in retail prices – particularly in energy – while also sending the message that the government’s reform policy and tax breaks will continue.
In the next few days the government will announce the inclusion of 12 more projects in the Recovery and Resilience Fund package of subsidies, and in mid-September it will put the eligibility criteria for the fund’s loans up for public consultation.
The Finance Ministry is considering the early repayment of a section of the bilateral loans Greece had received in the context of the first bailout in 2010, according to sources.
Parliament’s Office of the State Budget has submitted proposals on reforming European Union fiscal rules.
While Finance Ministry officials await the confirmation by the country’s independent statistics authority ELSTAT that the second quarter of the year was one of rapid growth to finalize their draft budget, they also have to reckon with the fact that they are not free to determine which tax cuts they will implement.
The government has to grapple with the rising cost of trying to mitigate climate change and conforming with European environmental norms.
Tax revenue over the seven months of the year, at around €24.4 billion, fell €101 million, or 0.4%, short of the government’s target, but still exceeded last year’s, raising hopes that the government can go ahead with tax cuts in 2022, including in the Single Property Tax (ENFIA).
Fewer than one in three taxpayers will be called upon to pay additional taxes once their income statements are processed.
A bill on mitigating climate change will be tabled in Parliament soon, with the prospect of significant future EU funding.
Having received €4 billion as a downpayment on the €30.5 billion in aid (€17.8 billion in grants and €12.7 billion in loans) provided by the European Union through the Recovery and Resilience Fund, the government must now show it is efficiently absorbing the aid and sticking to the rest of its commitments to receive the next installment of €3.5 billion.
Officials in Athens, Brussels and Frankfurt are shortly expected to discuss ways for the European Central Bank to continue to provide Greek banks with plenty of liquidity at low rates.
The government’s margin for providing tax breaks in 2022 is not known yet, given all the extra spending on pandemic and disaster relief, but it is preparing to soon submit two draft bills that will provide such breaks for two very different purposes.
