ECONOMY

New payment plan for tax debtors

The government has reached a deal with the country’s international creditors allowing it to offer citizens with expired debts to the tax authorities and social security funds a new payment plan.

However, this will only apply to those who have never entered a payment plan or have but have not yet made any payments.

The new plan will allow for the payment of debts in 48 or more monthly installments, provided those debts do not exceed 5,000 euros.

The creditor representatives, known as the troika, have not allowed for the extension of the plan to those who have serviced their debts properly to date, as that could create a fiscal gap.

The Finance Ministry intends to offer the new plan to debtors who had not paid any installments to the state by March 31.

Salary workers and pensioners will be able to pay a minimum of 20-25 euros per month. Penalties will be cut by 20 percent for those paying in 48 installments, and halved for those paying their debts in a lump sum.