ECONOMY

Medium and high incomes face more tax

medium-and-high-incomes-face-more-tax

The Finance Ministry’s tax overhaul plan puts more pressure on medium and high incomes, starting from 30,000 euros per year and growing for higher incomes, Prime Minister Alexis Tsipras confirmed in a television interview in the early hours of Tuesday.

“The additional burden will be smaller at 30,000 euros [of annual income] and greater at incomes over 65,000 euros,” Tsipras told Star TV, confirming there will be a 50 percent tax rate for yearly incomes in excess of 60,000 or 65,000 euros. Besides the tax hikes, the government has proposed to the creditors an increase to the solidarity levy for incomes over 35,000 euros.

These changes will be incorporated in the tax bill to be presented to Parliament in March, along with a draft law on the voluntary declaration of hitherto undeclared incomes.

Tsipras also announced discounts for families with children, although such a proposal has not yet been submitted to the country’s creditors, according to sources.