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SYRIZAGreek GovernmenteconomyGreek economypackagetaxespositive measuresdiscountGovernment examining new package of positive measures to be announced after Easter
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The government is examining a package of additional positive measures that are expected to be announced after the Easter holidays, sources said on Wednesday. Some of these measures will be permanent and some will be one-off actions, while the government is also mulling the reintroduction of a discount for those that pay their taxes up front and in full, instead of opting for installments, as a reward to prompt tax payers.
The new round of positive measures was discussed on Wednesday at a meeting between Prime Minister Alexis Tsipras and Finance Minister Euclid Tsakalotos. According to sources, specific announcements will be made after Prime Minister Alexis Tsipras returns from China, which he will visit from April 25 to 27 with a delegation of ministers. The more permanent measures could include a reduction of VAT rates, a reduction of the basic income tax rate and additional corrections to ENFIA (Real Estate Property Tax).
The “right” to take new positive measures arises because the primary surplus target has been greatly exceeded once again, sources said. The fact that the primary surplus target has been repeatedly outperformed in recent years makes finance ministry sources speak of a “structural problem” in deciding the size of surpluses. The fact that the estimates of both the ministry and the institutions are constantly being proven wrong has already triggered a discussion process to find which part of the surplus has permanent and repeating features.
According to government sources, Tsipras said during the meeting that “the exit from the (last) memorandum has provided new impetus to the Greek economy and gives us an additional option of deepening the new economic policy we inaugurated in September 2018” at the Thessaloniki International Fair with his policy speech.
He added, “We can now set out a comprehensive plan focusing not just on the present but on the next four years as well, to provide permanent tax cuts and thus give a big boost to development. These will strengthen the healthy economic cycle we are in now due to the sacrifices of the Greek people.”
Finance Ministry sources noted that the target for this years’ primary surplus is being reviewed for the better. The budget foresees a primary surplus of 3.6 pct of the GDP but after the spectacular 2018 performance it will be reviewed upwards, creating room for more benefits.
Referring to the restoration of the discount for the single-installment payment of income tax, it was noted that the discount was 1.5 pct in 2015 and increased to 2 pct for a time before it was abolished. This measure is again on the negotiations table, along with a new plan for 120-installment payments of overdue debts to the Tax Bureau. Sources said that there is no need to discuss the debt settlement measure with the institutions as it does not fall under their jurisdiction, as they have been defined in the context of the enhanced surveillance programme. The technical teams of the institutions will be in Athens between 6 and 8 May.
Source: ANA-MPA