After the vote approving the government’s policy platform in the early hours of Tuesday morning, action to bring tax cuts that strengthen the middle classes and kickstart the Greek economy will begin.
The two tax bills and the tax relief that these introduce form the basis of the government’s plan to change a regime of excessive taxation, which has hindered the growth of the Greek economy in recent years. The objective is to reduce the tax burden and attract new investments to boost economic growth and pave the way for reducing the primary surplus target below 3.5 pct as of 2021, in agreement with Greece’s EU partners.
The first fast-track bill to be tabled in the parliament by the end of the week will include reductions in the 2019 and 2020 ENFIA property tax, new more favourable conditions for the 120-installment debt settlement scheme and changes to the standard settlement of 12 to 24 installments offered for debts to the tax office. The second bill is expected to be tabled in the parliament in September. This will include reductions in household and business income tax and measures to support the construction sector.