Following the categorical refusal of his coalition partners PASOK and Democratic Left and the strong society reactions, prime minister Antonis Samaras gave orders for a new examination of the taxation draft and thus on zero-basis, as it’s been claimed.
According to Greek media, the new taxation system provisions to be revised are:
1) the 45% tax rate for annual incomes over 26,001 euro for employees and pensioners
2) allowances for families with children, especially those with more than 3+
3) farmers’ taxation
The Prime Minister gave instructions to relevant departments to make new taxation proposals for a fairer distribution of tax burdens but in a way that there will be no deviation from the targets set in the budget.
Finance Minister Yiannis Stournaras will hold a meeting with representatives of the coalition government parties to present the new proposals. The new taxation system has to be ready by end of December and be voted in January 2013.
One scenario claims that the revision will re introduce the original plan of:
1) tax rate 21% for annual income up to 25,000 euro
2) tax rate 36% for annual income 25,001-48,000 euro
3) tax rate 45% for annual income more than 48,001 euro
Unfortunately there is no scenario to cancel the decision to scrap the tax-free amount of 5,000 euro. Samaras had praised to gradually raise the tax-free amount from 5,000 to 8,000 and 10,000 euro. But that was last April or so, before the elections….
PS and so works the bargain of the political system with the society: they give you the “worst” scenario then they revised to “less worst”. At the end the troubled citizen is content with the “worse”. Phew!
