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“Greek taxpayers will see a tax reduction of €3.5billion,” says Tsakalotos

Greek taxpayers will see a tax reduction of 3.5 billion euros in the near future, Finance Minister Euclid Tsakalotos said in Iraklio, Crete, on Friday. He did not define “near future” thought, neither did he revealed how this tax reduction will look like…

Speaking at an Iraklio Chamber event, Tsakalotos said the drop in taxes would come from revenues following the reduction of tax evasion, as well as a new model of fiscal management.
“It is important to deal a blow to the clientelistic state, which is another of the reasons that the middle economic classes are weak,” the finance minister said.

“Up to 2009, rich Greeks paid taxes on a voluntary basis. This takes time to deal with. This created our difficulty in reducing taxation,” he noted.

Note: “Near future” could be February 31st,  March 10th or even July 6th … Or March next year.

I should also note that Tsakalotos hardly makes ‘political promises’ therefore I’m wondering whether we are up to early elections. Some media claimed in recent days that the government is considering early elections next October.

If this is true then Tsakalotos’ ‘near future should be placed somewhere towards the end of August, that is after Greece exits the fiscal adjustment program, or September.

If Tsakalotos’ promise comes true it will be a real Greek economic revolution as Greeks have been burdened with one tax after the other, one extra tax here and another there, an economic death spiral for thousands of people who cannot afford anymore basic goods or heating oil, ever since the country surrendered to creditors in 2010.

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