ECONOMY

Tax breaks on party agendas ahead of polls

tax-breaks-on-party-agendas-ahead-of-polls

Out of Greece’s almost 9 million taxpayers – and voters – about two-thirds, or 6.1 million, already know what they can expect after this year’s general elections, as they form the large majority of people with an annual income of up to 10,000 euros.

However, the same cannot be said about the remaining one-third with declared annual incomes of more than 10,000 euros. The future of this minority will become clear after the elections, as neither ruling SYRIZA nor opposition New Democracy are likely to show their hand regarding the precise form of tax rates and brackets any earlier.

Despite their differences, the two main parties that will be fighting it out in this fall’s elections have practically agreed already that no matter how large the so-called “fiscal space” in the next few years, the majority will at least not be any worse off, and may well reap some benefits too. That will be achieved by maintaining the tax-free threshold at its current level, which sees no tax being charged on incomes of up to 8,600 euros, or up to 9,500 euros with a small reduction of the lowest income tax rate from the current 22 percent level. That will shift the obligation of almost the entire tax load to the other third of taxpayers. 

The two main parties have also agreed on exhausting the fiscal leeway of the period up to 2023 by financing the promises they make about easing the tax burden as well as various other benefits.