The Ministry of Finances has decided to introduce a brave settlement for outstanding debts towards the State, in an effort to boost the declining public revenue. This settlement is separate to the 100 installments settlement.
On Wednesday the Alternate Minister of Finances Nantia Valavani announced the plans for the new settlement, which will be in effect until the end of March. According to the settlement, debtors will see surcharges and fines written off, should they pay off their capital debt in full.
The aim is to help taxpayers with old outstanding debts, who may have seen their debts increased by 400% due to fines and surcharges. The plans were revised after some reactions and consultation with legal authorities, as the settlement may conflict with the Constitution.
Regarding the controversial ENFIA real estate tax, the government plans to reduce objective taxable values of real estate by June. The ENFIA tax itself will be replaced by a different real estate tax at some point later in the second half of 2015.
According to the government plans, the primary residence will be exempt from taxation, while a household’s tax-free threshold will increase to 500,000 euros. The government is also considering exempting agricultural fields from taxation and is rumored to introduce a maximum tax rate of 2% on top of the new objective taxable values.
