Greek FinMin tables draft tax bill in Parliament

Greek Finance Minister Christos Staikouras on Friday tabled in Parliament a draft tax bill envisaging more favourable provisions to taxpayers, private and corporate, to settle their debts with tax agencies.

Under the draft legislation, which will be debated and voted in Parliament under fast-track procedures, taxpayers will be offered lower monthly instalments (20 euros), lower interest rates (from 5.0 pct to 3.0 pct) and a bonus for higher advance payments.

Businesses will be eligible to enter a 120-instalments debt settlement scheme with a strong incentive of reducing interest and penalty charges between 75-95 pct if they opt for lower instalment schemes (up to 36 months).

The draft legislation also envisages reductions in a special property tax (ENFIA) by an average weighted 22 pct, offering a respite the real estate owners in the middle class and low-value owners. The ministry said that this scheme will be a last chance for taxpayers to settle their debt with favourable conditions and that after completion of the scheme, all debts will be settled through a permanent debt settlement mechanism.

Cuts in ENFIA, based on the total value of real estate assets, will be: 30 pct for property up to 60,000 euros, 27 pct for property up to 70,000 euros, 25 pct for property up to 80,000 euros, 20 pct for property up to 1,000,000 and 10 pct for property more than 1,000,000 euros. Taxpayers’ arrears will be eligible for inclusion in a 120-instalment scheme for debts up to December 31, 2018.

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