An unfair tax system

A new study by the Dianeosis think tank and the Foundation for Economic and Industrial Research (IOBE) shows without a shadow of a doubt just how inefficient and almost chaotic the country’s tax system is.

It is fundamentally unfair that, according to the report, 20 percent of Greek citizens – who account for 53 percent of total income – pay 80 percent of direct taxes.

The tax system’s essential unfairness stems from the fact that individuals with the same taxpaying capabilities are asked to pay different amounts.

Another indication of the system’s distortion is the fact that a significant 71 percent of self-employed professionals and a staggering 93 percent of farmers declare annual incomes of less than 9,000 euros. This means that the former pay a negligible amount of tax while the latter are exempt altogether.

The report’s data is from 2015 but the trend has not changed, and perhaps matters have become even worse since then as the constant changes to tax laws are not making the situation any better.

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