ECONOMY

Planned measures hit by virus

planned-measures-hit-by-virus

As the coronavirus continues to spread in Greece, the negative consequences have also generated worries about the course of revenues, as dozens of businesses are suspending operations every day and consumption appears to shrinking in certain economic sectors.

Finance Ministry sources are now taking it for granted that March and the following months will record a slump in public revenues and social security contributions, which will force the government to amend a series of decisions on the tax breaks announced, and delay those already voted on.

It is therefore likely that the adjustment of the property rates used for tax purposes (known as objective values) scheduled for the second half of the year will be put off till 2021, possibly from January, while several other measures will be changed, such as the obligation of taxpayers to make electronic payments equal to at least 30 percent of their annual income. The raises in main and auxiliary pensions through the Vroutsis law based on the new replacement rates will be postponed till September.

It remains unknown when the Taxis system will open for the submission of income tax declarations – and even more of a mystery as to when it will close. A ministry official noted that the objective at the moment is not when the submission procedure will begin but rather when the first tranche of income tax will be due to be paid by taxpayers and enterprises. Notably the state anticipates 1 billion euros from each of the three annual tranches. The possibility of the first tranche (by end-July) being missed is fairly strong and it could be September before taxpayers start paying their income tax to the state. That would also delay the calculation process for the Single Property Tax (ENFIA).