These are difficult times for state revenues. Greece’s government managed to raise only 22.3 billion euro in the seven months it was in power. The goal was €25.772 billion, and now the gap amounts €3.46 billion. Even the revised target of Primary Deficit of 0.25% for 2015 – as it was agreed with the country’s lenders in the context of the 3. bailout – seem hard to be achieved by the end of the year. Amid upcoming snap elections and capital controls, the upcoming tax tsunami is expected to fill the state cash registers with more than 20-22 billion euros by the end of 2015.
The Greek Finance Ministry attributes the shortfall in revenues in:
a) the extension of deadline for income tax declarations for 2015 and the payment of the first tranche of income tax for natural persons and corporation. the measure was mainly taken due to capital controls.
b) the failure to issue Unified Property Tax (ENFIA) collection orders and the payment of the first tranche. EFNIA collection is expected to start in October 2015.
c) non-collection of revenues from transportation of efficiency from the Greek bonds in the portfolios of central banks of the Eurosystem (ANFAs & SMPs) amounting 1.724 million euro.
According to the goals and plans, Greeks will be called to pour into state registers more than 20 billion euros in the next 4 months.
PS yup. Greeks are in highest anticipation to be allowed to start paying money in form of taxes. However, they wonder where they will find the money to pay these amounts, as their €uro printing machines at home have run out of color cartridges.
I cannot help but wonder if “part” of the reason the EU raised Greece’s VAT is because it knows that it is a viable way to collect money from Greece, knowing that other tax revenues may not be forthcoming. This is a real problem as the high VAT obviously hurts poor people worse, and the high VAT is on food products and other basic necessities of life.
Yes, this is a time-honoured tactic of right wing governments across the world. Indirect taxes hit the poor much harder than they do the rich, and are usually easier to collect in countries with high self-employment. Whenever there is a shift from direct to indirect taxes, there is a shift of wealth from the poor to the rich. This is the brutal and nasty mentality of the Troika: “fuck the poor, we wants our money.”
Perfect script for a terror movie.
I think we need to be asking “why” the creditors are doing this and what they really want. By now it is obvious to a 2 year old that their Memoranda progressively destroy the Greek economy and increase poverty, and do not rebuild a broken economy or “reform” it in the old positive meaning. This has been noted and observed not only by Greeks but all the non-European media and economists, and some European media too, ie London Telegraph etc.
Therefore the creditors are not even interested in getting their money back.
Clearly they want Greece’s public assets – this has been clear since MOU1. Now it seems they want Greeks’ private assets too. This becomes clear when you review the new draconian foreclosure and debt repayment laws, against the MOU3 background of slashed wages / pensions, higher taxes, and the 4th VAT hike in 5 years (which renders our tourism sector uncompetitive – besides hitting the poor and middle classes, ie 75% of Greeks.)
Along with this goes the emasculation of parliament since every new law must be vetted (and in some cases proposed) by the Creditors, and also of the Constitution, since all articles of the Constitution that contradict the Creditors edicts will be suspended.
This madness and robbery is the price Greece must pay to stay in the Eurozone. The alternative, according to the creditors, is their deliberate smashing of our banks. A lose-lose situation.
I wonder WHEN Greeks will deem this price too high? And when will they realise that the losses, isolation and chaos they fear in Grexit is already happening within the “safety” of the euro?
Indefinite general strike and boycott of elections could now follow.
I agree; the Troika arrangements are systematic looting and seizure of Greek public and private assets — all to prop up corrupt German, French and other banks. That is also the reason, by the way, why so many of the commenters in English oneline sites are from the world of finance. These criminals know that their industry’s financial health (hence their own employment) is closely linked to sucking the blood out of Greece and other countries.
The problem for Greek people is the choices are all negative: there is no satisfactory option, so it is a matter of interpretation and judgement about which sort of evil you choose to face.