ECONOMY

Plans for a single set of taxation rates

plans-for-a-single-set-of-taxation-rates

The Finance Ministry is planning a tax-free limit of 12,000 euros for annual incomes and a single set of tax rates to apply to salaries, pensions and incomes from property rentals for next year

In the negotiations with the technical experts of the country’s creditors, officials of the interim government have submitted various proposals that are being jointly discussed so the new government to emerge from next Sunday’s election can complete the prior actions faster and the new tax bill can be voted in Parliament within October.

The new single set of tax rates will also incorporate the solidarity levy, which will also be incorporated into the rates for the self-employed. A top ministry official said that the amount of the solidarity levy which is currently calculated separately will be spread among taxpayers through the tax brackets starting from the top income groups. He added that there are various scenarios being discussed, not only regarding the level of the tax-free limit but also to which taxpayers it will apply.

One idea is for the tax-free limit of 12,000 euros per year to concern only those with incomes up to that amount, while the rest will be taxed from the first euro.