Memorandum-mandated measures, deadlines loom for Greek govt through March 2017

Another 15 measures must be implemented by the Greek government by March 2017, part of memorandum-mandated obligations stemming from a third memorandum ratified in August 2015, with the most significant being an automated procedure for seizures and forfeitures of deposits, incomes and assets of taxpayers with arrears to the state.

Legislation dealing with businesses with excessive debts to the tax bureau and pension funds is also one of the measures that must be implemented by March.  

Additionally, specific deadlines are given for implementation.

In a bid to keep revenue targets in focus, the finance ministry must also abolish hundreds of tax breaks for businesses and modify various provisions for tax incentives. Of particular importance is an obligation to harmonize Greece’s tax regime on the maritime and shipping sector in the EU, a prospect that has generated a major disagreement between Athens and the European Commission.

Another measure is the harmonization of objection tax criteria with market prices.

In November, moreover, stricter fines for uninsured vehicles and ones that have not passed mandatory inspections, which number in the tens of thousands in Greece, will be unveiled.

Other measures, namely, ones that do not take a “bite” out of taxpayers’ pockets, deal with various attempts to simplify tax procedures and institute an exemption for VAT remittances from micro-businesses in certain instances.

The deadlines on the horizon include:

• Tuesday, Sept. 27, for a Parliament vote on a draft law that includes the “13+2” prior actions demanded by creditors
• A EWG meeting on Thursday, Sept. 29, where Eurozone partners will focus on the implementation of the prior actions
• Friday, Sept. 30, marks the deadline for the first payment of this year's property tax (ENFIA), along with the second installment of the income tax for individual taxpayers
• Monday, Oct. 3 is the deadline for the submission, to Parliament, of the draft 2017 budget.
• Monday, Oct. 10, will witness the holding of a Eurogroup meeting to approve a sub-tranche of 2.8 billion euros in bailout loans.
• On Monday, Oct. 17, representatives of institutional creditors will return to Greece to begin negotiations for the second review of the Greek program (third bailout).
• Monday, Oct. 31, is the government’s deadline for concluding the second review.
• A final draft for the 2017 budget is Nov. 21.
• Finally, the end of the year, Dec. 31, given by the government as a date for whatever decisions by creditors on the Greek debt, the level of primary budget surplus targets after 2018 and even the IMF’s continued participation in the Greek bailout.