Luxury tax is «final straw» for car industry

Luxury tax is «final straw» for car industry | tovima.gr

21.1.13

According to Konstantinos Mihalos, president of the Central Union of Greek Chambers (KEEE) and Commercial and Industrial Chamber of Athens (EBEA), the recently-imposed luxury tax on cars is the final straw for the car market, causing businesses to close and unemployment in what used to be one of the strongest sectors of the Greek economy.

Mr. Mihalos has contacted Minister of Finances G. Stournaras to discuss the worries of EBEA members regarding to car industry and the luxury. Mr. Mihalos demands that the luxury tax by repealed.

“Over the past five years, the dramatic cuts in wages and increase in taxes, has meant the eradication of car sales, particularly medium and large-sized vehicles, leading to 25,000 jobs lost, with thousands of official retailers and independent traders shutting down.

The KEEE considers the luxury tax illogical, since it exacerbates the crisis by putting car-owners in an even worse position. In his letter, Mr. Mihalos points out that not only did the government not achieve their tax collection goals; they are 150 million short with 700,000 off the roads. Only 2.2 million euros has been collected, from an estimated 70 million euros.

According to the Union of Car Importers, with the collapse of the market for cars with 2.0 litter engines and above, the government is missing out on 12,076 euros (plus VAT) from car registration taxes and a further 660 euros from the annual road tax.

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