Proposed tax hikes and social security cuts have been unveiled by the Greek government in a bid to meet a 3.6-billion euro target, while institutional creditors reportedly continue to demand a lower tax-free ceiling, in order to expand the tax base lower, as well as a “fail clause” with another 3.5 billion in measures in case the first target is missed.
Proposed tax hikes and social security cuts have been unveiled by the Greek government in a bid to meet a 3.6-billion euro target, while institutional creditors reportedly continue to demand a lower tax-free ceiling, in order to expand the tax base lower, as well as a “fail clause” with another 3.5 billion in measures in case the first target is missed.
Hikes in indirect taxes are budgeted to bring in 1.8 billion in extra revenue for state coffers.
Practically all tax brackets will see an increase in income tax rates, while indirect tax hikes will affect fuels, lottery games, mobile telephone bills, hotel rates and even subscriber television. A so-called “solidarity tax” slapped on taxpayers – beginning at the medium levels of annual incomes – will also increase proportionately.
Higher taxes are also proposed for income generated from property leasing.
One across-the-board hike that will dig in deeper into the pockets of lower-income consumers will be a proposed increase in the highest VAT rate to 24 percent.