ECONOMY

Realty tax discounts cut in half

Government plans for the general overhaul of the tax system include a reduction in tax exemptions on properties, while the Finance Ministry is preparing a new system for the taxation of the incomes of the self-employed and enterprises.

In most cases of tax exemptions concerning property transactions, donations, inheritances and parental donations, the government is making plans for their reduction by 50 percent, which would significantly increase the tax paid for most transactions.

Sources also say that the draft law to be tabled in Parliament in the next few weeks will also include a single property tax to apply from 2013 that will be payable every year by all property owners, including farmers, although in the case of farmland the government is still seeking a formula for registration and taxation.

A flat rate of 28 percent of income tax will be introduced for the self-employed, the same sources said, while salary workers and pensioners will also see a wide range of exemptions abolished.