Greece Looking at New Tax Measures

September 12, 2011 Taxation in Greece

New Tax in GreeceIn order to meet the eligibility criteria for continued bailout loans from the EU and the International Monetary Fund, the Greek government has found means of raising extra tax revenues, and plans to instate a new tax by the end of October.

In a bid to assure international creditors of Greece’s ability to meet its outstanding debts, the country’s government has revealed that a new property tax will soon be instated in an effort to raise approximately EUR 2 billion per year more in tax revenues. The announcement came on September 11th in a statement made by Finance Minister Evangelos Venizelos, after a meeting of the Cabinet.

The Minister explained that the tax would be collected alongside householders’ monthly electricity bills. The tax will be levied on the size of the property, and charge an average of EUR 4 per square meter, with rates varying based on the quality of the location.
According to international analysts, in order for Greece to raise the revenues necessary to close its budget gaps, the government must decide upon an easy to implement tax, which could be deployed rapidly, and would not add to further civil unrest. At this point, the property tax is the only measure that matched all these criteria.

The proposal for the new tax will be submitted to parliament on October 3rd, as part of the country’s upcoming budgetary discussions, with voting on the finalized plan scheduled to be held by the end of October.

Photo by Aster-oid