The Alternate Minister of Finances Tryfon Alexiadis announced that there would be no further tax burden on low and medium incomes in the taxation system changes that are to be introduced. Mr. Alexiadis also argued that the changes to be introduced will target higher incomes and revealed that the new tax scales will be determined in the next few days.

In a Wednesday-morning interview on ANT1, the Minister also clarified that as of 2016 only purchases with credit or debit cards will count towards the tax-free threshold. For 2015 though taxpayers will still have to collect receipts and invoices.

The aim of making the use of credit or debit cards ‘compulsory’ is to make it easier to locate tax evaders. The Alternate Finance Minister stressed that additional tax breaks will be introduced in order to encourage taxpayers to use credit or debit cards, particularly in professions with relatively high tax evasion rates.

As for the controversial VAT hike on the islands, Mr. Alexiadis noted that relief measures are being considered. Regarding the VAT in private education, the Alternate Minister commented that the matter is ‘not closed’ and that decision will be taken next week.