EU Commissioner for Taxation put a heavy tombstone in Greece’s hopes to reduce the Value Added Tax in catering services and goods. During a press conference in Athens, Lithuanian Algirdas Semeta made it clear that there was no room for tax reduction. Instead he advised Samaras’ government to build a simple and fair tax mechanism to identify and punish those breaking the law.
“Reduced VAT is not the appropriate way to address the problems in the economy,” Semeta told journalists and Greek lawmakers stressing the necessity of a tax reform as a feature important to development and social cohesion.
“There must be a simple and fair taxation system with a mechanism to identify and punish those who break the law.
He described a “positive first step” the establishment of a general secretary for public revenues, noting that “progress has been made showing strong political will” on the side of the Greek government.
“The issue is a fair tax system with zero tolerance for fraud” Semeta said, adding that the EU Task Force prepares new tax codes, which will be incorporated into Greek law.
PS I do not know exactly what European Commissioner for Taxation and Customs Union, Audit and Anti-Fraud, Algirdas Semeta, has in mind when he speaks of “fair taxation system”. But when I read and post about some provisions of the new taxation law like “taxing freelancers with 42% from the very first euro” and have “self-employed pay 90% of their taxes in advance” I wonder whether the word “fair” has another meaning in Lithuanian language.
With such provision of ‘fair’ taxation, the fraud will continue in increasing speed. And the Greek state will be demanding more and more taxes form those who cannot hide their incomes like employees and pensioners.
Should Semeta still have doubts about what I write, I would gladly bring him in touch with several unemployed young people who want to start their own small businesses but are scared to death about the high price they have to pay in taxes and insurance contributions. Even though they earn zero euro in the first month or year.