The Greek Parliament approved a package of tax cuts, benefit increases and other economic measures on Friday, with several provisions attracting overwhelming support from opposition parties that otherwise opposed the government’s broader bill. The measures, first announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF), were passed following a roll-call vote in which individual provisions received between 159 and 244 votes in favor.
Opposition parties continued to accuse the government of introducing measures designed to win votes ahead of elections, but backed many of the tax breaks and increases in financial assistance.
The strongest support went to a provision introducing a zero tax rate for families with three children and farmers. It received 244 votes in favor, five against and 35 abstentions. Other measures attracting broad support included an extension of property tax exemptions for primary residences in small communities, reductions in social security contributions, increases in birth allowances and annual adjustments to disability benefits.
Opposition splits over individual measures
The opposition’s voting patterns reflected a distinction between support for individual measures and approval of the legislation as a whole.
PASOK, the main opposition party, declined to endorse the bill as a whole, registering a “present” vote. It nevertheless supported 11 individual provisions, voted against measures establishing an investment savings fund for children and registered “present” votes on three others, including a provision to reduce the annual business levy.
SYRIZA supported 10 provisions and also opposed the children’s investment fund. It abstained on four others.
The proposed fund proved particularly contentious. The provision establishing it received 171 votes in favor and 102 against, with 11 abstentions. Support fell further on the provisions governing contributions to the Child Savings Plan and the state’s financial participation. Those passed with 160 and 159 votes respectively, while 103 lawmakers voted against each.
Tax cuts and property measures secure broad backing
Several of the package’s tax provisions attracted support well beyond the governing party. A measure to extend exemptions from ENFIA, Greece’s annual property tax, for primary residences in small communities passed with 239 votes in favor and eight against, with 36 abstentions.
Another provision gradually reducing and ultimately abolishing the annual business levy by 2028 secured 198 votes in favor, 30 against and 56 abstentions.
Lawmakers also approved a measure introducing a 15% property transfer tax rate for home purchases by residents of countries outside the European Union. It received 197 votes in favor, 12 against and 75 abstentions. A provision limiting the minimum taxable net income for taxi operators and extending reductions for businesses in small settlements received 223 votes in favor.
Parliament also approved measures allowing businesses to deduct the cost of machinery and equipment from their taxable income more quickly and protecting taxpayers who have met their obligations from additional tax charges. Another provision allows property owners to correct errors or omissions in their E9 property declarations for the years 2014 through 2026 without facing retroactive property taxes, interest or penalties.
Pensioners, families and public employees to benefit
The legislation also includes increases in financial assistance for pensioners, people with disabilities and families. A provision raising the yearly financial assistance for pensioners, people with disabilities and uninsured elderly people to 400 euros passed with 215 votes in favor, 10 against and 59 abstentions.
Lawmakers approved an increase in the birth allowance by 239 votes to 15, while a measure providing for annual adjustments to disability benefits received 239 votes in favor and 31 against.
A reduction in social security contributions also received 239 votes in favor, although 38 lawmakers opposed it.
One of the most widely supported provisions was a 500-euro Christmas bonus for public sector employees. It passed with 240 votes in favor, eight against and 36 abstentions.
The package also includes financial incentives to encourage people to settle and remain in the municipality of Megisti, which includes the island of Kastellorizo. That measure received 239 votes in favor.
Source: tovima.com
