ECONOMY

Property to cost owners even more

Political parties started on Thursday discussing plans for the reform of the tax system, which includes a merger of property taxes, the separate taxation of rent revenues and an increase in the minimum cost of constructing buildings, used for tax purposes.

Property tax will increase as a result, while the so-called objective values — i.e. the property prices used for taxation purposes — are also set to grow within 2012, in line with the government?s agreement with its official creditors for an annual adjustment.

The cross-party committee on tax reform, in which left-wing parties do not participate, also asked the Finance Ministry agencies to assess the benefit for state coffers from the above measures as well as the cost they would entail for households.

Plans include the introduction of a flat corporate tax at 15 percent, as well as withholding 15 percent of distributed profits.