Income tax

Taxpayers are rushing to meet their obligations on the last few days of 2015 so as not to start the new year with debts and tax fines. Huge lines are noted at tax offices around the country in a frantic rush to tie up loose ends.

The state budget for 2016 discussed yesterday until early morning on Sunday in the Greek parliament.

After a 12-hour debate, the budget was voted in with 153 votes in favor, and 145 against, with two MPs being absent.

A ministerial decree signed by the justice and finance ministers require Greeks to declare all valuables in their wealth statements henceforth. These include precious gems, jewelry, valuables and sums of cash exceeding 15,000 euros that they keep in their home.

The draft budget tabled last week in Greek Parliament has set the tone of what we should expect next.

Thousands of Greek households are to be negatively affected when the new tax reforms are implemented by the government, with the first rush of panic already felt by taxpayers as well as the relevant services of the General Secretariat of Public Revenue. From Tuesday until October 30, it will be raining changes as demands for money to line state coffers grow.

The Radical Left Coalition (SYRIZA) begins its new term of office – the second for 2015 – with property tax shocks bound to create havoc to the budgets of millions of Greek households.

Even prior to receiving a vote of confidence on Wednesday, the new government is planning the following:

A tough October is in store for Greek households that are being called to pay 2.5-3 bln euros in taxes (not including the VAT hikes imposed on Aegean islands or private education institutions).

Greek wage earners managing to scrape 1,000 euros per month in earnings will no longer be privy to tax breaks according to the third bailout. The new tax index hopes to line its coffers by 300 million euros by attacking the wages of lower income earners who manage to scrape 12,000 euros per annum – and possibly even 9,000 euros if necessary.

Greek Finance Minister Euclid Tsakalotos said on Wednesday that the country’s top short-term priorities are shoring up capital levels in the country’s banks and kicking off discussions on debt relief with Greece’s creditors.

?The nature of trade and the economy has changed in the world. In the past, goods and commodities passed through concrete boundaries and taxation was easier. Now there are intangible services and transfers that make it problematic,? said Leyla Ate?, an associate professor of tax law.