Higher takings permit tax cut

The large increase in revenue from income and value-added tax - as the electronic tools for curbing tax evasion are paying off - provide the government with the leeway to move forward with permanent tax cuts as of 2025.

Priority will be given to relieving the burden on middle-income earners, the most wronged category of taxpayers, especially in the years of the financial crisis. Freelancers and the self-employed are already the big winners from the government's previous tax and social security reform in 2019. Their deductions fell significantly as a result of lower tax rates, as well as a cut in advance tax which shrank to 55% from 100%.

Now, the intentions of the National Economy and Finance Ministry include the reduction of tax rates on middle incomes (18,000 to 50,000 euros earned per year), but also of the lower ones, who see much of their salary increases going...