Greece Eyes ATM Tax

May 27, 2015 Taxation in Greece

ROME – Using cash may become more costly in Greece, as the government looks at measures aimed at reducing tax evasion in the country.

In a press conference held on May 26th the Minister of Finance of Greece Yanis Varoufakis confirmed that the government is now evaluating the feasibility of several measures aimed at reducing tax evasion, including a new tax on bank withdrawals made at an ATM.

The minister said that by instating a minuscule tax on cash withdrawals may encourage consumers to use credit and debit cards instead of paying with cash, a move which will significantly reduce the incidence of tax avoidance by businesses which conduct business in cash in order to keep profits off their records.

Yanis Varoufakis added that the government was also mulling the possibility of launching a voluntary disclosure program to allow taxpayers to declare their undeclared offshore funds, in exchange for a reduced tax obligation and an escape from further penalties.

The minister added that the government would not attempt to force taxpayers to repatriate the funds, but only to legalize them and declare them.

Photo By: redspotted