Funds repatriation, new tax cuts get green light

Economy and Finance Minister Giorgos Alogoskoufis yesterday gave the final go-ahead for implementation of a scheme allowing the repatriation of funds banked abroad with no questions asked as to their previous tax status. Greeks who own bank accounts, shares, bonds or mutual fund shares abroad will only be asked to pay a one-off, 3 percent tax. Estimates of the total sum expected to be repatriated range from 4 to 20 billion euros. The tax amnesty was first adopted by law in late July, but could not be implemented until now in the absence of a ministerial decision setting out the practical details. Meanwhile, speaking at a Hellenic-American Chamber of Commerce conference yesterday, Alogoskoufis expanded on the tax cuts announced last Monday – which raised the level of tax-free income from 10,000 to 11,000 euros – by raising the tax-free bracket to 12,000 for families with one child, 13,000 for two children and 21,000 for three children.