Greece Eyes Tax Cuts

May 24, 2013 Taxation in Greece

Antonis SamarasATHENS – Greece is already looking at the feasibility of heavily reducing the rate of corporate taxes paid in the country, as the government inches further down the path towards a budgetary surplus.

In a meeting between the Prime Minister of Greece Antonis Samaras and the Prime Minister of Ireland Enda Kenny on May 23rd in Athens, the Greek Prime Minister indicated that the country could see a drastic reduction in its corporate tax rate once the country’s financial situation improves further.

According to Antonis Samaras, Greece will model its economic recovery on the actions and steps taken by Ireland, saying that “…we will follow the exactly the same successful example set by Ireland — both for the EU presidency and an exit from the crisis.”

He elaborated on his plan, explaining that in the foreseeable future Greece will reduce the rate of corporate income taxes to a flat rate of 15 percent, compared to a current rate of 26 percent.

Greece is also currently working towards lowering the rate of VAT levied on sales in the food service sector from 23 percent to 13 percent.

Explaining the current curse of action that Greece is taking in order to improve the economy, the prime Minister said that the government is now focused on reaching a “…primary surplus, which will trigger the clause agreed at November’s Eurogroup for the drastic reduction of our public debt”, and will put the country in a position where it can look at further reducing taxes in order to boost economic activity.

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