Government to spend another 800 mln euros on pensioners, farmers, subsidies

Government to spend another 800 mln euros on pensioners, farmers, subsidies

The Greek government on Wednesday unveiled a new package of support measures worth 800 million euros aimed at pensioners, taxpayers and businesses hit by inflation.

The package of measures, presented by Finance Minister Christos Staikouras, envisages payment of an extraordinary subsidy to pensioners who did not get a 7.75% pension increase, reviving older tax debt settlements, awarding taxpayers who kept their debt settlements “alive” but added new debt because of the pandemic or the inflation and extending a reduced VAT rate for another six months.

Pensioners who did not get a pension rise or they got a pension rise of less than 7% will receive an extraordinary payment by the end of March. The payment will be tax-free and will total 280 million euros.

It also provides for the extension of the reduced VAT rate on products and services such as transport, coffee, cinema, beverage and dance schools for another six months until the end of the year. The cost of the measure is 250 million euros.

Moreover, it provides for the payment of pending farm compensations at a cost of 120 million euros and reinstating a special consumption tax on farm diesel for the whole of the year at a cost of 76 million euros.

Other measures involve extending a subsidy for heavy work at a cost of 120 million, reviving of old tax debt settlement deals and including new debts under a new extended payment scheme of up to 72 tranches and improving an out-of-court debt settlement mechanism.

Staikouras said that by the end of next week, the platform for market pass will be open and that first handouts will be made by early March.


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