Exemptions and benefits under review

Exemptions and benefits under review

Tax exemptions and allowances are set to come under scrutiny, as the current system operates with little to no social criteria, with the result that economically strong social groups and tax evaders are favored.

Tax exemptions today number 1,047, having increased in the two years of the pandemic to support taxpayers and businesses, with their cost having jumped to 12.9 billion euros. The Finance Ministry intends to change the way of granting tax exemptions and allowances by following good practices that apply elsewhere in Europe. It is noted that Greece has one of the highest rates of tax exemptions in the EU.

Based on ministry figures, tax exemptions amount to 26.7% of tax revenue, while in some cases deductions cannot be counted, such as inheritance and gambling earnings, as they are not computerized, which means the cost is much higher and unquantifiable.

The above data, along with the fact that almost seven out of 10 taxpayers declare incomes that do not exceed €10,000, which demonstrates that not only is taxable material hidden but also that exemptions and allowances are directed to those groups that avoid declaring their actual incomes.

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