Editorial: Bulgarian wages and Swedish taxes
Two days ago, the Deputy Finance Minister Houliarakis admitted in Parliament that…
Two days ago, the Deputy Finance Minister Houliarakis admitted in Parliament that the major tax burden on honest taxpayers and businesses can pose a major threat.
Yesterday, the other minister Mr. Alexiadis stated that people unable to pay the inheritance tax will be able to cede the property to the state. It was also revealed from the Greek embassy in Sofia that 12 to 13 Greeks acquire a Bulgarian tax ID, with about 15,000 businesses having already moved their central offices there to avoid the major taxes.
These admissions however are not necessary to confirm that the Greek people and businesses are surviving in such adverse circumstances. The over-taxation has gone past all limits, with thousands of households and businesses barely managing to survive.
The only solution offered by the government is to raise taxes, both direct and indirect, which means that the already slashed wages are shrinking even more. This recipe will not only not bring growth, but it will force businesses to leave. With taxes changing every so often – there have been 36 tax laws in the past 15 years – no serious investor will consider Greece.
It is no coincidence that businesses are moving their central offices to countries with lower tax rates and those who remain here are evading taxes in every possible way.
On the one hand there are the wages that do not cover the bare minimum, on the other the excessive taxation which is forcing young people to leave. The perfect recipe for disaster. Bulgarian wages and Swedish taxes. Of course, while the country is suffering, the government has decided to focus on tackling vested interests.