ECONOMY

Tax, insurance debt payment plan coming

tax-insurance-debt-payment-plan-coming

The government is expected in the next few days to submit to Parliament legislation setting out new payment plans for outstanding debts to tax authorities and social security funds in up to 120 installments. The arrangement for social security debtors mainly addresses those who have been excluded from the out-of-court mechanism, in a move aimed at clearing a huge backlog at the Social Security Debts Collection Center (KEAO).

The new mechanism for social security debts is seen as crucial after data showed that the arrears came to more than 35 billion euros by end-March, while three in five debtors who had entered the 100-tranche plan have dropped out.

As for the settlement of tax dues, some debtors will be less fortunate than others, as their income level will determine the number of installments foreseen in their payment plan. This means that a debtor with an annual income of up to 10,000 euros will not have to pay any more than 300 euros per month, according to the Finance Ministry’s plans.