Tax breaks and benefits to boost low incomes planned by government
The new government is planning to introduce legislation in parliament, possibly as early as this week, with the aim of implementing further tax reductions and measures to support low-income individuals, according to sources. These measures are in line with New Democracy’s election campaign promises, aiming to boost available income in the face of high inflationary pressures.
The draft bill is expected to be approved before parliament goes on summer recess in August, and it will mainly impact the year 2024. The estimated cost of these measures is around two billion euros, benefiting approximately three million households. One of the proposed measures includes a potential extension of the market pass until the end of 2023, contingent on the necessity.
The government’s primary objective is to maintain a 2023 primary surplus of at least 1 percent of GDP, laying a strong foundation for the gradual implementation of policies in 2024, with a target surplus of 2 percent.
The Finance Ministry bill is likely to encompass various measures, including increasing the tax-free allowance for taxpayers with children, implementing a 10 percent reduction of the ENFIA property tax for houses insured against natural disasters, making changes to the public-sector wage scale, raising the minimum guaranteed income by 8 percent, enhancing maternity benefits for farmers and freelance professionals, exempting low-income pensioners from medicine contributions, providing a “youth pass” allowance for individuals turning 18 and 19, and increasing the child benefit for civil servants. [AMNA]
