ECONOMY

Credit card incentives in the pipeline

After reducing the value-added tax on food services, the government is now aiming to reduce the VAT paid when making purchases via credit card in a bid to better monitor taxpayers’ transactions and contain tax evasion.

The Finance Ministry is planning to offer a 10 percent discount on the VAT paid for goods and services whenever payments are conducted via credit or debit cards, as this will make it easier to monitor transactions and is seen boosting state revenues.

The aim is for cards to be used even for small purchases at kiosks, as is common in a number of other European Union countries.

The credit card incentive clause will likely be included in a draft law on investment incentives that is expected to reach Parliament in September.

Earlier reports had suggested another incentive might be offering prizes to lucky receipt holders.