Tax burden shifts from salary workers to self-employed

One of the proposals in the Finance Ministry?s overhaul of the tax system may signal relief for salaried workers and pensioners.

The government is said to be pondering reducing the tax brackets for the 4.8 million taxpayers in these broad categories from eight to four, with rates brought down to equal those for incomes from business activity, which, in turn, may rise to 30 or 35 percent.

While salaried workers and pensioners may see significant reductions come from such a measure, it would also entail the abolition of tax exemptions.

The purpose of the measure is to shift some of the burden from taxpayers who account for about 72 percent of taxes collected, or 8 billion euros per year, when entrepreneurs, farmers and the self-employed only pay 3 billion.

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