Cut Pension, Spread Taxes, IMF Tells Greece

February 8, 2017 Taxation in Greece

Greek taxesROME – Greece needs to cut its pension spending, while also spreading personal tax obligations across more people, according to the IMF.

On February 7th the International Monetary Fund released its latest report on the state of the economy of Greece, suggesting that a number of new tax reforms are needed in order for the country to become economically sustainable.

One of the ley reforms described in the report is a broadening of the personal tax system, in order to make the system more equitable.

It was explained that by spreading the tax burden across more taxpayers, the rates levied on personal incomes could be lowered, and the extra tax revenues could be used to cover government expenditure.

Currently the government of Greece has consistently reduced its levels of spending on infrastructure and other essential services, as the country struggles to meet its debt repayment obligations.

Further, the IMF noted that the government should reduce spending on its “unaffordably high” pension system.

By addressing the tax system and overpayment in the pension system, the government could both improve its own tax revenues, while also boosting spending and services.

In an effort to further boost tax revenues, the government was also urged to increase its efforts to curb tax evasion, and to implement a system to allow taxpayers to easily repay their debts to the government and tax authorities.