The Budget Office of Greek parliament summarized the tax increases that took place since the country sought the aid of International Monetary Fund. The report was thought as an answer to finance Minister Yiannis Stournaras who denies the Greek households were overtaxed.
“A series of tax increases from 2010 up today , combined with the reductions of taxable wages and the unemployment have created an explosive mix of economic and social suffocation, ” the Budget Office notes in its report .
The tax rates for households and businesses are higher than the average of EU countries and the Eurozone .
Value Added Tax stands at 23% versus 21.5 % in the EU and 20.5 % in the Eurozone .
The highest income tax rate for individuals in Greece stands at 46 % versus 39.5 % in the EU and 44.5 % in the Eurozone.
The highest tax rate for legal entities in Greece is 26% where it is 21.8 % in the EU and 25.9 % in the euro area. .
The highest tax rate for each income category is actually larger due to the additional tax of “solidarity levy” of 1% to 4%.
The income tax for employees and pensioners has increased 7 times since 2010, and nine times for self-employed.
The total amount paid by the taxpayers for the property tax has increased seven times since 2009: from €500million to €3.5 billion.
Capital gain tax (Yperaxia) has been imposed on properties.
The Value Added Tax has increased four times since 2010. [KTG note: the Troika allegedly demands V.A.T. hikes in food products, just BTW]
Traffic fees increased twice since 2010, and fuel taxes increased three times.
As of May 2010 for the first time a consumption tax was imposed on electricity, and on natural gas in 2011.
The equalization of tax rates on heating oil and fuel oil resulted in a tax increase by 450 % .
“”Further tax burdens to already heavy tax-loaded taxpayers, does not mean more tax revenue due to the exhaustion of the ability to pay but the increase of tax evasion,” the report notes. (newsmoney, source)
PS despite all tax odds, Greeks can claim their right to live happily under the sun – which is still tax-free to a large extend.