One proposal by the Greek government this week to allay creditors’ concerns that primary budget surplus targets will be met by the country through 2018 was to link the tax-free ceiling for annual income with the number of dependents (minors) a taxpayer declares.
One proposal by the Greek government this week to allay creditors’ concerns that primary budget surplus targets will be met by the country through 2018 was to link the tax-free ceiling for annual income with the number of dependents (minors) a taxpayer declares.
Creditors, the so-called “Quartet”, have demanded a decrease in the 2,000-euro deductible given to all tax brackets as well as the expansion of the tax base downwards. A previous tax-free ceiling was 9,545 euros in annual personal income, which was subsequently lowered to around 9,000, although lenders – Commission, ECB, ESM, IMF – have called for an even greater decrease.
Creditors point out that the very large majority of registered taxpayers in Greece – including many self-employed professionals, shop owners, craftsmen, farmers and seasonal workers – declare annual returns below 9,000 euros.
The latest Greek government proposal would lower the ceiling to between 8,182 and 9,090 euros depending on the number of dependents a taxpayer lists. For instance, a taxpayer with two or more dependents would enjoy a tax-free income ceiling of 9,090 euros.