Tax-free threshold to rise to 7,000 euros

The Finance Ministry is examining raising the tax-free threshold for taxpayers on salaries and pensions to 7,000 euros, while imposing a flat tax rate of 30 percent to self-employed professionals and companies, Kathimerini understands.

The new plan devised by the Finance Ministry has been presented to Prime Minister Antonis Samaras according to reports.

According to Kathimerini sources, the ministry is also exploring the possibility of abolishing or lowering tax exemptions, while working on a system based on fewer tax brackets.

A self-employed professional with an annual income of 40,000 euros, for instance, currently pays tax authorities 8,820 euros. If the flat tax rate of 30 percent is imposed the sum would rise to 12,000 euros.

For those on salaries and pensions, a 7,000 euro tax free threshold, up from 5,000 euros where it stands today, would act as a counterbalance to fresh measures which include new salary and pension cuts.

The ministry is reportedly also planning reducing, if not abolishing tax exemptions, such as spending on healthcare, among others.

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