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“I believe that the data from the Pulse poll confirms the correctness of our policy. Citizens are always suspicious, especially when they have heard many times in the past about the interconnection of POS with cash registers. We are talking about revenues that the state should collect and does not collect.
A tax administration, which becomes friendlier to the citizen and stricter in the enforcement of legality”, said Kyriakos Mitsotakis in a discussion at the event of the Ministry of National Economy and AADE on the modernization of tax administration and citizen service.
Asked about the political cost, the Prime Minister recalled that limiting tax evasion was a central pre-election commitment of the government. “I think the balance, economic and political, is positive for society. The additional revenue, which we have been able to collect from the fight against tax evasion, goes back into society creating additional fiscal space for further tax reductions.
The additional revenue came from the fight against tax evasion and from increased economic activity. This is the success of our tax policy. As long as these structural measures are permanent, we are given the opportunity after 2025 to plan other permanent tax cuts and we will turn our attention to further relief for the middle class. This policy returns the dividend of additional revenue back to society.”he underlined.
Mitsotakis: The tax reductions
When asked if we can have greater tax reductions, Mr. Mitsotakis reminded that in the budget we already have 12 tax reductions. He added: “With the change in fiscal rules, the country now has spending ceilings. If we have consistent outperformance from structural measures, yes, we can lower tax rates. It is important to show that these structural measures pay off permanently. Our persistence in online transactions.
All interventions by the AADE are measures that on the one hand facilitate and on the other allow us to identify the real taxable material. Today, Greece is achieving fiscal targets, reducing debt, growing at three times the European average and reducing taxes.”
Mr. Mitsotakis said that what we have achieved is quite special and positive for European data and is a justification of the tax policy and in 2027 the economic result of this policy will be visible to everyone. “And in the middle class, the wage earners have seen tax cuts, but we can be even more committed to their relief until 2027. We have to see the implementation of the measures in 2025. They are structural measures. We have also taken emergency measures.
This government did not hesitate to tax the excess profits to the electricity producers and return the money to the citizens. The government did not hesitate to tax the refineries. These are emergency measures which we do not normally like. We like structural”.
The VAT
In a subsequent question about the VAT and whether the rate reduction is off the table, the prime minister said that “one unit reduction in the VAT costs about 1.5 billion in revenue and that we are a country in several categories with lower VAT rates”.
Mr. Mitsotakis noted that “the more pleasant surprises we have, the more room for maneuver we will have in the last two years of our term”.
SOURCE: ot.gr
#Mitsotakis #Reliefs #employees #medium #incomes
**Given the differing perspectives presented by the economist and the small business representative, what are the key tensions and trade-offs that policymakers need to consider when formulating and implementing future tax reforms in Greece?**
## Interview: Assessing Greece’s Tax Policy
**Guests:**
* **Dr. Sofia Papadopoulos:** Economist and Tax Policy Expert
* **Yannis Dimitriou:** Representative of a Small Business Association
**Moderator:** Welcome to today’s discussion on Greece’s tax policy and its impact on citizens and the economy. We are joined by Dr. Sofia Papadopoulos, a leading economist specializing in tax policy, and Yannis Dimitriou, representing the interests of small businesses. We’ll be delving into Prime Minister Mitsotakis’ recent remarks on the effectiveness of these policies and their future direction.
**Section 1: Building Trust and Combatting Tax Evasion**
* **Moderator:** Prime Minister Mitsotakis highlights the importance of citoyens’ trust in the tax system. Dr. Papadopoulos, how effective have the government’s measures been in rebuilding this trust, especially given historical concerns about tax evasion?
* **Moderator:** Yannis, from the perspective of small business owners, has there been a noticeable shift in attitudes towards tax compliance, and what further steps could be taken to encourage participation?
**Section 2: The Balance Between Revenue and Tax Relief**
* **Moderator:** The Prime Minister emphasizes the economic benefits of cracking down on tax evasion, citing increased revenue and subsequent tax cuts. Dr. Papadopoulos, do you see this as a sustainable model for long-term economic growth? What are the potential downsides of prioritizing revenue generation over immediate tax reductions?
* **Moderator:** Yannis, how have the recent tax cuts affected small businesses? Have they provided the necessary relief to stimulate growth and investment? What specific areas could benefit from further adjustments?
**Section 3: Fiscal Responsibility and Future Tax Policy**
* **Moderator:** Prime Minister Mitsotakis hints at the possibility of further tax reductions after 2025, depending on economic performance. Dr. Papadopoulos, is this a wise approach? How can the government ensure responsible fiscal planning while responding to the needs of citizens and businesses?
* **Moderator:** Yannis, looking ahead, what are the key priorities for small businesses in terms of tax policy? What message would you like the government to consider as it develops its future tax strategy?
**Section 4: Addressing Concerns about VAT and Targeted Relief**
* **Moderator:** The Prime Minister expressed caution about reducing VAT rates, citing the potential revenue loss. Dr. Papadopoulos, what are the arguments for and against adjusting VAT rates, particularly for essential goods and services? Are there alternative ways to provide targeted relief to vulnerable populations?
* **Moderator:** Yannis, what impact would a VAT reduction have on small businesses, both directly and through consumer spending? Are there specific sectors or industries that would benefit more than others?
**Closing:**
* **Moderator:** Thank you both for sharing your insights on this crucial topic. As Greece continues to navigate its economic future, the discussion surrounding tax policy will remain central to ensuring sustainable growth and improving the lives of all citizens.
