Greece News Weekly

PM Mitsotakis reveals his policy program with tax reliefs

Greek Prime Minister, Kyriakos Mitsotakis, presented his multi-faceted agenda of measures regarding tax reliefs, labor regulations, less bureaucracy through digitization and investment. During his speech at Thessaloniki International Fair, the Prime Minister stressed that his government’s “absolute priority is growth for all”

He listed a series of measures, however, nothing new to his pre-elections promises and the announcements after the elections.

He referred to measures already taken by the government, such as a reduction in special property tax, freezing of excessive pensions and offering more favorable repayment terms to millions of households and enterprises with debts to the tax agency and social insurance funds.

He presented a 12-month government plan that he said will be judged at the next Thessaloniki International Fair in 2020.  Starting from this year and in the years to come – the TIF address will be a presentation of a 12-month plan, with medium-term directions and democratic accountability.

“We are a government that does what it says,” Mitsotakis said adding “that’s the way we intend to move going forward.”

“Greece is no longer the black sheep of Europe, it is a country with confidence that actively participates in European developments, a country that does not speak exclusively about its own problems, but seeks common solutions to our continent’s great challenges,” the prime minister said.

“At the same time, however, we will focus dynamically on investments for the production of new wealth and to boost employment,” Mitsotakis said, adding: “With a bold wave of reforms we will win strong credibility and with the right timing and our positive results as a weapon, we will claim more realistic, annual primary budget surpluses”.
“We unblocked investments stuck for years because of bureaucracy and political indifference. We will immediately promote the privatisations of DEPA, Hellenic Petroleum and Athens Airport (for the latter it is a matter of days to begin a process to sell a 30 pct share owned by the Greek state).

A restructuring plan for the Public Power Corporation (PPC) is underway and don’t forget that – after four years – we fully lifted capital controls in the country,” Mitsotakis said.

Among the main policy actions designed to boost economic growth, which are investments, labour relations and a productive digital state, he listed tax relief measures for natural persons and businesses.

Among them are:

The current tax-free allowance and lower tax rates for annual incomes of up to 10,000 euros to 9.0% from 22% currently.

Tax on new farm vehicles will fall to 10%, while the government will soon table new legislation on agricultural cooperatives in Parliament.

Lower the corporate tax rate to 24%t from 28% currently and a dividend tax to 5.0% from 10%.

VAT free on new buildings for a three-year period and a 40% discount in spending for renovation and upgrading of buildings.

Postponement of the capital tax on real estate.

The fees for solidarity and trade will be abolished in medium-term, not in 2020. During the press conference on Sunday, Mitsotakis mentioned 2021.
The fees for solidarity and trade will be abolished in “medium-term, not in 2020.” During the press conference on Sunday he mentioned “2021.”

In 2020 a 2,000-euro subsidy for each new child born with the exception of very high income categories.
All baby items, child seats and motorcycle helmets will be taxed at a lower VAT rate of 13%. pct.

An additional tax exemption of 1,000 euros per child and a monthly financial support of 180 euros for each position in kindergartens.
With regards to the “13th pension” given by SYRIZA before the Euro-elections, Mitsotakis said that the “13th pension” will be paid at the end of 2020.

Regarding the big investment projects like the Hellinikon, he said that works are expected to begin  in early 2020.
“Growth for All” means also the development of small- and medium-sized enterprise, Mitsotakis said, adding “because success is when, alongside a big project, a small shop also raises its revenue.”

The Prime Minister did not reveal the cost of the tax relief measures. When asked during the press conference on Sunday, he told reporters that he will provide them with details about the cost.