The government’s top financial officers – Yannis Dragasakis, Yanis Dragasakis and Giorgos Stathakis – have put together a 50-page reform package which will aim to bring stability to the Greek economy and convince Greece’s European partners to restore funding and assistance.
The list includes measures that will boost VAT revenue, such as tax increases on tobacco and alcohol, as well as the abolishing VAT exemptions and discounts at popular tourist island destinations such as Myconos and Santorini. The list reportedly also includes an agreement for the privatization of regional airports, two ports (in Piraeus and Thessaloniki) and the sale of the public railway company OSE with binding offers.
Additionally the government is geared towards modernizing and providing greater autonomy to tax administration. The ultimate goal is for the creation of a body to manage tax revenue that will be completely independent from the Ministry of Finances. Further changes which the government is working on are the taxation of triangular transactions with a 26% rate – which has met resistance from businesses – as well as the taxation of undeclared incomes and assets.
Other reforms which the government is working on are seemingly harder, such as the abolition of exemptions for early retirement (before the age of 62) and the zero deficit clause for supplementary pension funds, while Greece’s creditors want the clause to apply to the main pension funds as well. The legislation on bankruptcy and red loans is also to be updated.
With the Greek government under pressure to come to an agreement, the list will be finalized within the next few days in order to be sent to the president of the Euro Working Group Thomas Wieser on Wednesday.
