The Greek government has achieved approval of roughly one-third of a package of measures to meet creditors’ demands for primary budget surpluses, as a percentage of GDP, by 2018, with the indirect tax “bill” closing at 1.8 billion euros in projected additional revenue.
A government source, according to the state-run news agency, said the package of indirect tax hikes includes a high VAT rate of 24 percent, one percentage point higher than the already stratospheric 23 percent.
Negotiations, nevertheless, are continuing over fiscal measures, with differences, again according to the government source, over the level of the tax-free annual income ceiling.
According to information circulated by the government side, Athens wants the tax-free income rate at 9,091 euros – 500 euros less than than last year's level – while the IMF wants an even lower tax-free ceiling, supposedly at 8,182 euros.
