Taxes rising faster than incomes
Taxes rose faster than incomes in 2000, according to Finance Ministry data. An analysis of the income tax returns submitted in spring 2001 shows that declared incomes rose 9.4 percent and taxes imposed rose 12.3 percent. Not all people showed their tax burden rise; some lucky groups, such as rentiers and farmers, actually gained. The income of rentiers rose by an average 5.8 percent, but their taxes declined 4.6 percent. Farmers’ declared income rose 10 percent, but they paid 5.65 percent less taxes. The committee of experts that recently submitted its proposals on tax reform has urged the government to find ways to make farmers pay more taxes. At present, their contribution to total revenue from direct taxation is just 0.72 percent of the total. Salaried workers’ and pensioners’ declared incomes rose 4.7 percent and 5.8 percent respectively, while the taxes they paid rose 8.6 percent and 5.5 percent respectively. Merchants fared worst of all, paying 35 percent more taxes. This particular category showed a spectacular increase in income, so much so that 150,000 taxpayers whose declared 1999 income was so low that they were tax exempt, paid taxes in 2000. Salaried employees and pensioners paid 55.3 percent of all direct taxes. They were followed by self-employed professionals (26.12 percent) and merchants (13.66 percent). Professionals declared an average income of 8.6 million drachmas (25,230 euros). They were followed by salaried employees (4.5 million drachmas or 13,206 euros), merchants and shopkeepers (4.3 million drachmas or 12,620 euros) and pensioners (3.3 million drachmas or 9,685 euros). More than half of those who submitted income tax declarations in 2001 (51.9 percent or about 3.5 million people) declared incomes below the 2.8-million-drachma (8,217-euro) threshold and thus paid no taxes. Another 15.3 percent declared incomes between 2.8 million and 4 million drachmas (11,739 euros). Only 77,772 Greeks declared an annual income over 16 million drachmas (46,955 euros).
