Cash is to be king no more

Cash is to be king no more

The government is spearheading an effort to significantly reduce the amount of cash still being used in transactions between taxpayers and businesses as well as among firms, aiming to reduce tax evasion and bolster state revenues.

According to sources, one of the measures that the Finance Ministry is considering is raising the amount that salaried workers, pensioners and professional farmers need to reach every year in online transactions to secure the maximum tax discount of 1,900-2,100 euros.

The ministry is also planning to include in the bill to be tabled in Parliament later this month the reduction of the ceiling in the use of cash for financial transactions concerning the purchase of goods or services. The limit will reportedly be reduced from the current level of 500 euros per transaction to 300 or even 200 euros, sources add.

The bill will further incorporate the suspension of the capital gains tax on properties for three years and its review in the fourth year, the suspension for three years of the value-added tax on construction activity and the gradual introduction of compulsory online invoices among businesses, among other measures.

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