2020 tax package: A thorn for Greek government and creditors

Α Decrease font Enlarge font
2020 tax package: A thorn for Greek government and creditors“Poorer” salaried workers and pensioners will shoulder additional taxes of up to 450 euros each, while “richer” taxpayers will save more than 700 euros in income tax and the solidarity levy

A package of tax measures for 2020, which includes the reduction of the tax-free ceiling and a series of rate reductions, will shift the burden of 2 billion euros from about 500,000 taxpayers with a personal income of 22,000 euros or more per year to about 4 million people with takings between 7,000 and 22,000 euros/year from salaries, pensions or agricultural activity, according to ekathimerini.com.

That entails that “poorer” salaried workers and pensioners will shoulder additional taxes of up to 450 euros each, while “richer” taxpayers will save more than 700 euros in income tax and the solidarity levy.

The impact of the 2020 tax package is at the focus of political parties, as the decision for its activation will need to be taken, at the latest, by November, when the 2020 budget will have to be tabled in Parliament. If general elections are held in October, as the government insists, then the issue is certain to dominate the pre-election period due to the consequences of the measures on personal incomes.

The 2020 package includes the reduction of the tax discount from 1,900 euros per year for a single taxpayer to just 1,250 euros, the reduction of the lowest tax rate from 22 percent to 20 percent, as well as the activation of the new set of solidarity levy rates, with the new calculation bringing down to zero the levy for incomes up to 30,000 euros/year.

Given that the budget is expected to close this year with a primary surplus of 3.5 percent of gross domestic product, it is almost certain the question will be whether the voted measures (reduction of the tax discount) and the offsetting measures (reduction of tax rate and solidarity levy) should apply simultaneously, or be scrapped in their entirety.

Scrapping the measures and counter-measures would require the green light from the country’s lenders, which would be based on the existence of additional fiscal scope of many hundreds of millions of euros (up to 2 billion euros), but this will not become evident before September. There is also no possibility for drafting a budget for next year with a primary surplus below 3.5 percent, as even if such a discussion were to take place with the eurozone, it will most likely concern the 2021 budget.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

Photo Source: Wikimedia Commons License: CC-BY-SA 

Tornos
  1. 08/12 14:30

    Archangel Michael Church Greek Language Institute’s new curriculum in New York

  2. 08/12 14:27

    Greek government's new benefits policy includes easing fostering and adoption

  3. 08/12 14:21

    Pancyprian WIN’s Christmas Party in Glen Cove of New York on December 11

  4. 08/12 14:14

    Social dividend of 700 euros credited to beneficiaries in Greece by end of December

  5. 08/12 14:09

    Minister: Expat Greeks a great asset for unity when nation is challenged

  6. 08/12 14:04

    Primary residence protection on outstanding loans extended in Greece to April 2020

  7. 08/12 13:45

    President of Libyan House of Representatives to visit Greece

  8. 08/12 11:54

    Christian and Muslim leaders’ declaration against domestic violence in Greece

  9. 07/12 20:36

    'Stranded' rosy pelicans flown by plane from Cyprus to Lake Kerkini in Greece

  10. 07/12 18:16

    Greek FM: Libya's Ambassador given 72-hour deadline to leave the country

  11. 07/12 02:21

    Signing of the «golden» contract for Athens Metro Line 4 imminent

  12. 07/12 02:15

    Greek metallurgy firm becomes Aluminium Stewardship Initiative member

  13. 07/12 02:08

    EU VP Schinas and Commissioner Johansson conclude migration talks in Turkey

  14. 06/12 23:25

    Sharp increase in issuing of Golden Visas by Greece

  15. 06/12 23:05

    New delay in Athens Hellenikon casino project license award

  16. 06/12 21:18

    UN migration head appeals to EU to ease refugee pressure in Greece

  17. 06/12 18:54

    Canada’s PM Trudeau meets Greek counterpart Mitsotakis at NATO Summit

  18. 06/12 17:45

    Greece gains double benefit from latest Eurogroup meeting

  19. 06/12 15:39

    Athens opens door for Chinese investments in Greek telecommunications

  20. 06/12 14:05

    High Court rules Greek State must cover emergency private health care

  21. 06/12 13:33

    Greek Finance Minister announces €700 social dividend for 250,000 households

  22. 06/12 12:49

    Mystery Santa Claus brings joy to orphaned children in Volos, Greece

  23. 06/12 11:47

    Pontian Genocide conference held in Athens over the weekend

  24. 06/12 01:45

    Athens more sparkling and magical than ever this Christmas - full program of events

  25. 06/12 01:25

    Pantanassa Monastery in path of fires in New South Wales of Australia

  26. 06/12 01:21

    First snow of the season falls in Trikala and Thessaloniki in Greece (video)

  27. 06/12 01:20

    SNFCC sessions presents Greek-British artist Alex Kapranos in Athens

  28. 06/12 01:17

    Israel rebukes latest instance of 'Turkography' in the east Mediterranean

  29. 06/12 01:01

    CNN: Colorful Greek street on Mykonos island among most beautiful in the world

  30. 05/12 23:32

    New single framework for insolvent borrowers to be launched in Greece

  31. 05/12 23:21

    Greek President urges for dialogue among cultures at Academy of Athens event

  32. 05/12 23:11

    Athens approves Vatican’s ‘humanitarian corridor’ for asylum seekers

  33. 05/12 23:04

    Prime Minister: Greece relies on EU solidarity to address refugee crisis

  34. 05/12 22:47

    4.52 billion in tax arrears covered by 120-month installment plan in Greece

  35. 05/12 22:25

    The Travel lists 20 tips by Santorini locals for tourists in iconic Greek island

  36. 05/12 18:44

    Moon rocks from Apollo 11 on display at Athens National Observatory

  37. 05/12 16:35

    Greek Diaspora Minister Diamataris's statement following his resignation

  38. 05/12 16:09

    Envipco Automated Recycling Plant inaugurated by PM in Greece

  39. 05/12 14:54

    INSETE: Greek listings on Airbnb and HomeAway reach €1.15 billion in revenues

  40. 05/12 14:37

    Greece offers impressive tax breaks to attract affluent foreigners

  41. 05/12 14:21

    Temperatures drop below zero in ski resorts of Greece

  42. 05/12 14:06

    ELSTAT: Greek economy grew 2.3% during third quarter of 2019

  43. 05/12 10:55

    Athens International Science Film Festival returns for 13th consecutive year

  44. 05/12 10:32

    Religious Tourism: Visit Monastery of Agia Varvara Roussanou in Meteora

  45. 04/12 23:16

    New platform support vessel acquired by Hellenic Navy at historic Salamina site

  46. 04/12 22:43

    UK PM Boris Johnson unveils he reads Greek poetry to relax (video)

  47. 04/12 22:16

    Northern Greek city of Thessaloniki in search of its very own Santa Claus

  48. 04/12 22:10

    Tourism's carbon emissions measured in UNWTO report at COP25 (video)

  49. 04/12 22:06

    Fly safely and drink responsibly campaign launched in Norway

  50. 04/12 21:07

    Piraeus manager Cosco takes share in Bilk container terminal in Hungary

  51. 04/12 20:52

    Telecom provider Wind Hellas to get first offers during this month

  52. 04/12 20:39

    First relief for Greece's tax-battered middle class after 10 years of crisis

  53. 04/12 20:09

    US Ambassador hails reopening of Neorion Shipyard on Greek island of Syros

  54. 04/12 19:57

    Greek PM backs North Macedonia and Albania European Union hopes

  55. 04/12 19:40

    New flights to Greece in Summer 2020

  56. 04/12 19:24

    Greek Tourism Minister announces targeted action plan for U.S. market

  57. 04/12 19:17

    Religious Tourism: Catholic Archbishop of Malta visits Ecumenical Patriarchate

  58. 04/12 18:58

    US Ambassador in Athens warns that China may use cash-hungry Greece

  59. 04/12 18:30

    Minister: University reform to include performance-linked funding in Greece

  60. 04/12 18:00

    EU "in full solidarity with Greece and Cyprus" on Turkey-Libya MoU

  61. 04/12 17:35

    26W T-bill auction by Greece nets €812.5 million with negative yield of 0.02%

  62. 04/12 16:15

    Air Cargo peak season off to slow beginning during October 2019

  63. 04/12 14:24

    Average full-time private sector monthly salary in Greece reaches €1,166.76 in May

  64. 04/12 12:47

    Enjoy the traditional Greek loukoumades

  65. 04/12 10:10

    Greek PM to address meeting on the sidelines of NATO's anniversary

  66. 04/12 01:37

    Minister: Bilateral relations between Greece and Israel at an exceptional level

  67. 04/12 01:27

    Greek PM discusses tourism investments with top fund managers in London

  68. 04/12 01:16

    Greek PM to meet with Turkish President on the sidelines of the NATO Summit

  69. 04/12 00:52

    City Break report: Visiting popular Greektown spots in Detroit

  70. 04/12 00:07

    Greek health monitoring startup attracts attention of Johnson & Johnson

  71. 03/12 23:51

    Prime Minister: Greece fully supports EU targets to fight climate change

  72. 03/12 22:44

    Greek Foreign Minister meets with EU Representative for Foreign Affairs

  73. 03/12 22:35

    Bank of Greece chief working towards other systemic solutions for NPLs

  74. 03/12 22:20

    Technical solution for Thessaloniki Metro Venizelou Station greenlighted

  75. 03/12 21:05

    State Department: Turkey-Libya zones deal 'unhelpful and provocative'

  76. 03/12 20:52

    Piraeus Bank staff on strike actions on Wednesday and Thursday over layoffs

  77. 03/12 16:36

    European Union seeks clarifications from Cyprus over citizenship scheme

  78. 03/12 16:10

    Greek Labour Minister unveils plans for transition to digital age

  79. 03/12 14:34

    Survey: Samaria Gorge attracts tourists to Greek island of Crete

  80. 03/12 14:04

    Cold front from the Balkans to affect Greece from Tuesday to Thursday

  81. 03/12 12:52

    European Union Refugee Commissioner promises that Greece will get help

  82. 03/12 10:56

    Greek artist Dimitris Papaioannou debuts at Brooklyn Academy of Music

  83. 03/12 03:52

    Boost for efforts to curb unruly passengers as MP14 comes into force

  84. 03/12 03:36

    Farmers to block highways across central Greece on December 4

  85. 03/12 02:58

    State offers incentives for green energy projects in Greece

  86. 03/12 02:21

    Names unveiled of 26 affluent foreigners stripped of Cypriot passports

  87. 03/12 02:17

    Greek Foreign Ministry tables migration returns proposal in Brussels

  88. 03/12 01:55

    Public and MediaMarkt form biggest omnichannel retailer in Greece and Cyprus

  89. 02/12 22:14

    800 Ancient Roman amphorae confirm 6th AD shipwreck off Akrotiri-Dreamers Bay in Cyprus

  90. 02/12 22:03

    Greek Prime Minister to meet US President on January 7 in Washington DC

  91. 02/12 20:57

    Cypriot farmers angry over new halloumi cheese guidelines

  92. 02/12 20:19

    Christmas lights at Stavros Niarchos Foundation Cultural Center in Athens

  93. 02/12 18:46

    Eurogroup expected to greenlight €767 million tranche to Greece on Wednesday

  94. 02/12 18:00

    Christmas in Athens commences with tree lighting at the Grande Bretagne

  95. 02/12 16:53

    Traveler Awards 2019 Russia: Greece voted best beach holiday destination for 2019

  96. 02/12 16:41

    UNWTO welcomes fellow United Nations agencies to Madrid for start of COP25

  97. 02/12 14:59

    Survey: Which? unveils best and worst travel price comparison platforms

  98. 02/12 14:30

    Greek government announces own 'social dividend' for 200K households

  99. 02/12 12:40

    Greek Prime Minister attends UN Climate Change Summit in Madrid

  100. 02/12 10:50

    CEOWorld’s Best Hotels on Greek island of Kefalonia for business travelers