Greece to Implement 12 New Tax Reductions in 2025 as Growth Exceeds EU Average

07:51 2/11/2024 - Πηγή: iEfimerida

Greece’s Minister of National Economy and Finance, Kostis Hatzidakis, announced plans for 12 new tax cuts in 2025, citing Greece’s economic growth and effective anti-tax evasion measures as reasons for easing the tax burden on citizens.

“We want to further reduce taxes, not because we want to be agreeable, but because we can,” Mr. Hatzidakis stated at the annual Tax

Forum held by the Hellenic-American Chamber of Commerce.

The minister pointed to Greece’s recent economic performance, noting that growth is expected to exceed the EU average. International forecasts, he said, along with continued efforts to combat tax evasion, would support the government’s ability to deliver on further tax relief measures in the coming years, with additional cuts potentially introduced in 2026 and 2027.

Highlighting Greece’s progress in reducing the tax-to-GDP ratio, Mr. Hatzidakis referred to recent Eurostat data showing that Greece had the largest drop among EU countries in 2023. The country’s tax burden fell from 42.8% of GDP in 2022 to 40.7% in 2023, a decline driven by both revenue from anti-evasion measures and 60 tax cuts introduced by the government over the last five years.

“These combined efforts mean that those who pay their taxes will now carry less of a burden,” he noted, emphasizing that the shift was particularly evident in the average tax rate for salaried employees, who now pay less in taxes than the self-employed for the first time. “Fairness in revenue is a goal we’re achieving through these measures, even as some questioned the new system,” Mr. Hatzidakis added.

The minister also outlined the government’s recent success in linking cash registers to point-of-sale (POS) systems, a move that has bolstered VAT collection by 10.3% in the first half of 2024. According to Mr. Hatzidakis, “The increase is due to growth, anti-evasion efforts, and inflation adjustments.” He remarked, “We’ve chosen the difficult but correct path, and we’re seeing results.”

Looking ahead, Mr. Hatzidakis announced that a draft law containing the 2025 tax initiatives will enter public consultation next week. Key measures include income tax exemptions for properties rented out, further reductions in social security contributions, and new incentives aimed at encouraging business mergers and innovation.

“This path is about sustainable progress and easing the load for those who contribute to Greece’s growth,” Mr. Hatzidakis concluded, underlining the government’s commitment to fair and effective tax policy moving forward.

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