The Minister of Finances’ announcement on Tuesday, whereby the government is debating a tax on cash withdrawals within the framework of negotiations with the creditors, caused some uproar, forcing the government to reconsider.
According to a statement by the Ministry, the proposal was made in the Brussels Group talks and the Ministry notes it rejected it, since it goes contrary to its policy of giving incentives to reduce cash transactions. The Ministry clarifies that the proposal for the taxation of bank transactions (including ATM withdrawals) has been taken off the negotiation table.
VAT negotiations, legalization of hidden overseas accounts and IMF payment
In his press interview on Tuesday the Minister of Finances Yanis Varoufakis confirmed that the institutions want two VAT rates, however the proposal for three rates (7%, 14% and 22%) is back on the table, however the former troika partners have demanded high rates.
Furthermore, Mr. Varoufakis revealed that there were discussions about an agreement for the voluntary disclosure of overseas bank accounts, which will allow the holders to legalize them, without being forced to repatriate the funds, in exchange for a 15% tax. Mr. Varoufakis added that domestic accounts with undeclared funds may be taxed 30%, although moral and legal issues may arise.
When asked about the IMF payment that is due on the 5th of June, the Minister of Finances responded that the loan installment will be paid, as he expects an agreement by the 5th of June. Mr. Varoufakis explained that this is his “new doctrine”.
