Greek Fin. Min. Hatzidakis: Tax Reductions Planned for 2025-2027

Greece’s Minister of National Economy and Finance, Kostis Hatzidakis, announced that the government plans to implement 12 tax reductions in 2025, during the annual Tax Forum organized by the Hellenic-American Chamber of Commerce on Thursday.

“We want to further reduce taxes, not because we want to be agreeable, but because we can,” said the minister.

Hatzidakis added that further reductions could be made in 2026 and 2027 initially because Greece is expected to achieve higher growth than the EU average, according to estimates from international organizations, and secondly, due to ongoing efforts to reduce tax evasion.

He further stressed that thanks to the new anti-tax evasion measures, those who diligently pay their taxes will see a lower burden.

The minister highlighted Eurostat data indicating that in 2023, Greece had the largest decrease in tax burden relative to GDP among EU countries, dropping from 42.8% in 2022 to 40.7% in 2023.

“Despite initiatives to combat tax evasion that lead to increased revenues, economic growth and the 60 tax reductions implemented by the government over the last five years have resulted in a decline in the tax-to-GDP ratio,” he stated.

Hatzidakis also announced that the draft law implementing the initiatives announced for 2025, including income tax exemptions for closed properties offered for rent, further cuts in social security contributions, and incentives for mergers and innovation, is expected to enter public consultation next week.

Regarding measures against tax evasion, Hatzidakis noted that for the first time, the average salaried employee pays less tax than the average self-employed individual, pointing out that these changes have resulted in fair revenue, despite some disputing the new system.

He also mentioned the successful implementation of linking cash registers to POS systems, which has exceeded the goals set within the Recovery Fund framework.

“This has contributed to a 10.3% increase in VAT revenues in the first half of 2024 compared to 2023, despite a 3% inflation rate. The remaining 7.3% comes from growth and the fight against tax evasion. We have chosen the difficult but correct path, and that’s why we are seeing results,” he remarked.

Source: tovima.com