Author Topic: Higher taxes expected to bring in 1.35 bln euros of 1.8 bln shortfall  (Read 2985 times)

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Offline BeeTee

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Hikes on taxes on a slew of consumer products and services that will be presented to Parliament for ratification in the next few days are expected to bring in 1.35 billion of the 1.8 billion euros shortfall seen in revenues.

According to deal reached by the Greek government and international lenders, the hikes will include raising the top rate of value-added tax from 23 percent to 24 percent on many basic commodities, expected to bring 450 million euros into state coffers. Raises, however, are not expected on public utilities like water and electricity.

Industries will also have to pay more for unleaded gas, natural gas and butane, as taxes are also raised on various imported products such as coffee, as well as on tobacco.

Pay TV will also become more expensive for consumers, as too may Internet or mobile phone services and hotel accommodation.

The unified property tax, of ENFIA, is to be revised so as to place a bigger burden on the owners of multiple or large properties, while raises are also expected on the tax on bank checks, vehicle use and car imports.

The new measures are calculated to bring in 900 million euros, in addition to the revenues from the higher VAT rate.

Savings, meanwhile, of around 350 million euros are to be made by preserving the rule of one hiring for every five departures in the civil service and freezing promotions in sectors of the public administration that are in a higher salary bracket.

An additional 100 million euros will be cut from the defense budget to reach the overall target of 1.8 billion euros in revenues and savings the government needs to hit to satisfy creditor demands for a primary surplus of 3.5 percent of gross domestic product in 2018, as outlined in the latest bailout deal.

http://www.ekathimerini.com/208324/article/ekathimerini/business/higher-taxes-expected-to-bring-in-135-bln-euros-of-18-bln-shortfall

Offline Maik

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Re: Higher taxes expected to bring in 1.35 bln euros of 1.8 bln shortfall
« Reply #1 on: Thursday, 05 May, 2016 @ 13:04:46 »
Not that I'm suggesting that the more tax people have to pay, the less willing (or able) they are to pay it...

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Just 8 percent of taxpayers have submitted their tax statements for 2015 incomes, according to data from the General Secretariat for Public Revenue. The delay is attributed to the strike by accountants who oppose the new social security system, as well as to the absence of any hurry on the part of taxpayers to meet their obligations.

In the month since April 5, when the online Taxisnet platform opened, just 500,000 income tax declarations have been filed of a total 6.2 million statements the online system is expected to receive this year. In this context Alternate Finance Minister Tryfon Alexiadis warned on Wednesday there would be no extension to the June 30 deadline.
http://www.ekathimerini.com/208384/article/ekathimerini/business/taxpayers-appear-reluctant-to-file-their-income-tax-statements

Offline Maik

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Re: Higher taxes expected to bring in 1.35 bln euros of 1.8 bln shortfall
« Reply #2 on: Monday, 09 May, 2016 @ 13:27:43 »
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Most people can expect to see their tax bills increase

The majority of taxpayers will suffer retroactive tax increases that affect their incomes from January 1, 2016, according to a bill that was to be passed into law in Parliament on Sunday night.

The level of the income tax-free ceiling for Greeceā€™s salary workers, pensioners and farmers will be determined by the number of children dependent on each taxpayer.

As the new law dictates, the hitherto level of 9,550 euros of income exempt from taxation per annum (effective through a tax discount of up to 2,100 euros per year) will now only apply to taxpayers with at least three dependent children, as in all other cases the ceiling will drop to as low as 8,636 euros.

The new tax law further provides for an increase in taxation for those with incomes from property rentals, along with a hike in the tax on dividends as well as the tax rate for small and medium-sized enterprises from 26 to 29 percent.
http://www.ekathimerini.com/208444/article/ekathimerini/business/most-people-can-expect-to-see-their-tax-bills-increase


Offline Aristarches

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Re: Higher taxes expected to bring in 1.35 bln euros of 1.8 bln shortfall
« Reply #3 on: Tuesday, 10 May, 2016 @ 11:06:02 »
I was taught, back in the dark ages, that increased taxation equals lower demand equals higher unemployment equals lower tax revenue.  I suppose I'm just old-fashioned.

Offline TonyKath

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Re: Higher taxes expected to bring in 1.35 bln euros of 1.8 bln shortfall
« Reply #4 on: Friday, 13 May, 2016 @ 22:01:28 »
I was taught, back in the dark ages, that increased taxation equals lower demand equals higher unemployment equals lower tax revenue.  I suppose I'm just old-fashioned.

That's not necessarily true, Ari, but probably is in this case.  It depends on what the tax take is used for.  Keynes' idea was that governments can use additional spending to stimulate parts of the economy where net employment increases, i.e. in this case as redistribution.   This is even truer for increasing borrowing or even printing money - i.e. recently quantitative easing. However using the tax take to pay back bankers is likely to have exactly the effect you describe.

Tony
« Last Edit: Friday, 13 May, 2016 @ 22:03:16 by TonyKath »