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  • State budget has 951 mn euros in new taxes

    The new tax measures that have already been passed by parliament, and that will come into force as of next year, will affect wage earners, freelance professionals, and other taxpayer categories.

    ΤοΒΗΜΑ Team

    The 2018 budget which the government has tabled in parliament features 951 million euros in new taxes, and a 1.2 billion euro cut in primary expenditures, making it the most ambitious budget of the last few years in terms of meeting targets.

    The new measures that have already been passed by parliament, and that will come into force as of next year, will affect wage earners, freelance professionals, and other taxpayer categories.

    The budget also provides a 1.6 billion euro cut in total expenditures on insurance, healthcare and social welfare.
    The new budget will be discussed in talks between the government and creditors in Athens tomorrow.

    Seven billion euro surplus

    The 2018 budget provides for a primary surplus that is 3.82 percent of GDP, or 7.051 billion euros, with GDP expected to shape up at 184.7 billion euros, and the debt at 179.8 percent of GDP.

    The state in 2018 expects to collect 478 million euros more in direct taxes than in 2017, and indirect taxes of 473 million euros, making a total of 951 million euros in additional taxes.

    From the ENFIA real estate tax and other property taxes the government projects revenues of 3.7 billion euros.
    In total, net revenues from next year’s regular budget are projected at 50.5 billion euros, while tax refunds are projected at 3.65 billion euros.

    The 2018 budget cuts include elimination of the 10 percent tax discount on medical expenditures, which the government expects to rake in 121 million euros. The discount had operated as an incentive for patients to ask doctors to issue receipts, which leads some to believe the abolition of the discount may actually produce lower revenues.

    From the freeze on all pensions, the state will collect 328 million euros.

    The increase in the VAT tax on 32 Aegean islands is expected to yield 85 million euros in revenues.

    Dinos Siomopoulos

    International