Tax hikes proposed

[Maik]

Proposals include big tax hikes

Out of the 7.9 billion euros in fiscal measures that the government proposed to the country’s creditors on Monday, the lion’s share, or 7.3 billion euros, concerns increases in taxation and in social security contributions.

The government proposed three value-added tax rates: a low one of 6 percent for medicines, books and theater tickets, a medium one of 13 percent for food (mostly fresh), electrical energy, hotel accommodation and food service, and a high one of 23 percent for all other products and services. That is seen raising 1.36 billion of extra revenues per annum.

However, the target is for additional revenues of 1.8 billion euros, so the government is also considering bringing the VAT on food service up to 23 percent, and abolishing the special status granted to Aegean islands (with a 30 percent discount on VAT rates).

The single property tax (ENFIA) will remain intact, while farmers will see significant tax hikes.

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_22/06/2015_551376