However legitimate the taxation of concentrated wealth, namely real estate, might be, overtaxation is just as problematic. Especially in a society like ours that continues to suffer from the social and financial crisis, where it is clear that the people’s taxpaying ability is not infinite. The government may argue that the tax rates of buildings and land that were announced yesterday might be less than the controversial “emergency real estate tax” we are currently paying via DEI bills, but there are cases of overtaxation that absolutely make no sense.
In an effort to collect the necessary funds they agree to with the troika – and because estimations suggest that a section of society will be unable to pay – they have excessively increased the tax rate for certain categories of buildings and real estate. In a time where the market has more or less collapsed and there is no interest in buying or selling, the objective values bare no relation to reality. It is insane to tax inert assets (such as a plot of land) with an annual tax that starts from 1,000 and can reach 30,000 euros per acre, each year. This essentially urges their owners to sell them off just to keep on top of their tax obligations.
In a country like Greece, where real estate was thought of as the safest investment, the majority of owners have reached a dead end. Income from real estate has reduced dramatically – and justifiably in many cases – because wages have shrunk or disappeared at the same time. Already a significant number of people are unable to pay the consecutive taxes that have been coming in waves over the past few months.
The necessary taxation of real estate has gone exceeded all measure. There is a distinct probability that the government will fail to collect the revenue it estimates. A more realistic approach to real estate taxation does not only make sense, it is necessary.
TO VIMA
