ECONOMY

IMF wants social security contributions levelled

The International Monetary Fund has proposed the introduction of a single set of regulations for calculating social security contributions and taxes, as well as a common rate of contributions for all workers insured in social security funds, i.e. both salaried workers and the self-employed.

The three alternative scenarios drawn up by experts from the IMF who visited Greece in recent weeks and presented to the government include: Either harmonization within each enterprise, or a partial harmonization of taxes, social security contributions and revenues, or a full harmonization in policies concerning taxes and contributions. All three scenarios would require a single register for taxpayers and those insured in social security funds as well as a common payments center.

The IMF acknowledges that the full implementation of such a measure would require a significant number of changes being imposed over a rather short period of time, i.e. by June 2017. It also argues that the calculation of contributions should be based on income criteria.

The IMF experts further refer to a new payment plan for expired debts to social security funds, saying that the target of collecting 350 million euros by the end of the year would require the country’s debtors to accept the scheme immediately.