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Tax declarations: The extension is on the desk – 1 million haven’t been submitted – 2024-07-26 17:58:25

by Chief editor of world-today-news.com July 26, 2024
written by Chief editor of world-today-news.com

With the “curtain” of tax declarations falling in 4 days and greater than 1 million declarations of pure individuals and about 100,000 declarations of authorized entities not having been submitted to this point on the AADE platform, the state of affairs of a brief extension is now on the desk of the Ministry of Finance.

In response to reviews, tomorrow Wednesday, in a particular assembly, he’s anticipated to make clear the state of affairs because the state of affairs can be assessed to make the ultimate selections.

On the Ministry of Finance categorically reject requests to increase the deadline till September 30 set by the accountants and tax specialists, however it’s doable to determine on a number of days’ extension till midday on July 31. On the identical day, the deadline for the cost of the primary installment of the revenue tax for taxpayers with a debit settlement expires and, based on competent brokers, an extension of the deadline for submitting the declarations till the final day of July doesn’t overturn the revenue tax assortment plan.

The figures of the AADE present that till yesterday 5,484,719 tax returns had been submitted out of a complete of 6.6 million returns and with a view to full the method by Friday July 26, when the deadline usually expires, a mean of 250,000 returns should be submitted from at present time period per day.

Tax invoice

A breakdown of the tax returns submitted to date exhibits the next:

  • For 32.99% of the tax declarations or for 1,809,408 there may be an additional tax cost of a complete quantity of two.946 billion euros or 1,628 euros on common. The tax could be paid both as soon as till July 31, 2024 with a 3% low cost or in 8 month-to-month installments with the primary being paid on the finish of the month. There’s additionally the answer of paying off the invoice in 12 interest-free installments with a bank card, or the debt could be included within the mounted association of 24 interest-bearing installments.
  • For 20.17% or for 1,106,267 declarations the result’s a credit score with the entire quantity of the tax refund amounting to 357.251 million euros or 323 euros on common. It must be famous that for 88.68% of taxpayers the quantities have been refunded or set off with different money owed to the tax workplace. Particularly, 63.85% have acquired a direct refund with a credit score of 150.251 million euros, for twenty-four.8% central offsets of 65.6 million euros have been carried out, whereas for 1.59% refunds or offsets have been carried out 11, 3 million euros from the D.O.Y
  • For 46.84% or for two,569,042 tax declarations the settlement is zero.

Supply: ot.gr

#Tax #declarations #extension #desk #million #submitted

July 26, 2024 0 comments
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Three adjustments to presumptions – A breather for freelancers – 2024-07-21 12:45:41

by Chief editor of world-today-news.com July 21, 2024
written by Chief editor of world-today-news.com

The Ministry of Finance is getting ready a triple reduction for professionals and self-employed people who find themselves caught within the pinch of the minimal assumed earnings, sustaining, on the one hand, the fundamental philosophy of the measure, because the Prime Minister himself had acknowledged Kyriakos Mitsotakis just a few days after the European elections, and eradicating then again, with the purpose adjustments which are going to be made, from the framework of the presumptions hundreds who’re at present burdened with further taxes when they need to not.

In line with unique data of “Sunday Step”, the federal government’s monetary workers is ready for the completion of the submission of this yr’s tax returns in an effort to then course of all of the proposals on the desk and make the ultimate choices on the scope of the changes-corrections which are going to occur.

Nevertheless, some key adjustments appear to have already been locked in as a result of, as they rightly state, “are based mostly on widespread sense.”

The proposals for adjustments

There are three principal proposals for adjustments that, based on “To Vima tis Kyriaki”, the federal government goes to undertake in an effort to restrict the reactions it receives from the professionals and which had been not too long ago transferred to the poll field of the European elections with the numerous lack of votes recorded by the New Democracy.

1. The primary is to “freeze” the will increase which are predicted to happen within the minimal presumptive earnings because of an adjustment of the minimal wage. Basically, the rise within the minimal wage that can occur this yr and within the following years to succeed in 950 euros – which is a authorities dedication – ​​shouldn’t be transferred to the minimal presumptive earnings. It is a complete improve of 14.5%.

The minimal earnings of 10,920 euros, which is utilized to the incomes of 2023, has been derived from the quantity of the minimal wage that was in drive final yr, i.e. 780 euros, multiplied by 14 wages acquired by employees within the personal sector.

If the rise for this yr’s earnings will not be “frozen”, then for 2024 the minimal presumptive earnings will rise to 11,620 euros, i.e. the extra tax that shall be paid by those that declare internet income under this quantity is 154 euros, whereas till 2027 , which can full the rise of the minimal wage to 950 euros, the minimal assumed earnings will rise to 13,500 euros and the extra tax burden by 523 euros.

2. The second crucial intervention is for the willpower of the minimal presumptive earnings to bear in mind the household incomes of freelancers, which isn’t the case immediately.

For instance, within the case of a married couple, if one has e.g. annual incomes of 20,000 euros, whether or not they come from salaried work or from a contract career, and the opposite partner, as a substitute of exhibiting a minimal earnings of 10,920, exhibits 5,000 euros, that one partner can primarily cowl the distinction of the decrease earnings from his personal.

That’s, to by some means work the system that’s utilized immediately to cowl the presumptions of dwelling, the place one partner can personal a automobile however it seems that the opposite partner maintains it. Nevertheless, if one partner’s earnings covers different dwelling bills (homes, automobiles, yachts, and many others.) and isn’t sufficient to soak up the distinction within the different partner’s minimal earnings, then it’s probably the opposite partner’s presumptive minimal earnings that it’s skilled to not be coated and incur further tax.

3. The third decisive intervention is to not embody solely the earnings he could have from salaried companies, from pensions and even from agricultural actions, however to bear in mind to cowl the minimal earnings and the earnings from rents, from curiosity on deposits, capital positive factors from shares, bonds, and many others.

The Minister of Nationwide Economic system and Finance Kostis Hatzidakis, two days after the elections, about the potential for adjustments within the taxation of self-employed individuals, he had acknowledged, amongst different issues, that “taxation will not be one thing static, there isn’t any system that shall be legitimate for many years. Issues are evolving, initiatives for digital transactions are shifting ahead and this method is not going to final ceaselessly.”

It appears, due to this fact, that the earnings earned by freelancers this yr shall be taxed in 2025, after they submit their tax returns, the place they are going to be taxed with a minimal presumptive earnings however will be capable to cowl it way more simply in comparison with ,what applies to 2023 incomes declared this yr.

Nevertheless, already within the workplace of the brand new Deputy Minister of Finance Christos Dimas in Karageorgi, Serbia, many requests-proposals for adjustments arrive every day from professionals in addition to competent our bodies in order that the brand new system turns into fairer for many who declare their actual incomes, however on the identical time doesn’t go away room for tax evaders to flee the pinch of the Tax Workplace on the expense of of the remainder, many in quantity.

Nevertheless, it’s price emphasizing that within the coming months the Ministry of Finance is ready for the choice of the Council of Ministers, which will even play a decisive position in any choices.

What applies

The minimal wage

The quantity of the minimal earnings is elevated relying on the years {of professional} exercise, the whole payroll and the quantity of the turnover of the enterprise with a most quantity of fifty,000 euros, whereas exemptions, reductions and likewise exemptions from the brand new technique of taxation are foreseen for particular classes of execs.

Particularly, the annual minimal wage for professionals for the primary 3 years of exercise is zero, however for the 4th yr of labor it’s set at 3,603 euros (tax 324 euros), for the fifth yr of labor at 7,316 euros (tax 658 euros), for the sixth yr of labor at 10,920 euros (tax 1,102 euros), from 7 to 9 years of labor at 12,012 euros (tax 1,342 euros), 10 to 12 years of labor at 13,104 euros (tax 1,582 euros) and for greater than 12 years of labor at 14,196 euros (tax 1,823 euro).

Moreover, a 5% surcharge is utilized to the minimal payment, calculated on the distinction of the very best turnover declared by the skilled in comparison with the common for the registered CPA.

#presumptions #breather #freelancers

July 21, 2024 0 comments
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Tax declarations: The deadline expires – Accountants in disaster, ask for an extension – 2024-07-21 08:35:31

by Chief editor of world-today-news.com July 21, 2024
written by Chief editor of world-today-news.com

They maintain their papers closed on the Ministry of Finance relating to the potential of giving even a number of days’ extension for the tax declarations in order that the accountants have time to submit roughly 1,530,000 declarations inside eight days. Based on the official figures of the Unbiased Public Income Authority, 5,070,854 tax returns had been submitted by Wednesday, July 17, whereas 112,000 returns have been submitted in simply sooner or later.

Nonetheless, these figures present that it’s inconceivable for the accountants to submit all of the remaining returns, since to attain this they must submit a median of 191,000 tax returns daily till July 26.

In reality, as they level out, that is unlikely to occur as it’s the weekend and in addition as a result of excessive temperatures, lots of their purchasers are unable to return to their places of work to proceed with the ultimate submission of their declaration.

Extension to tax returns

The Minister of Nationwide Economic system and Finance Mr. Kostis Hatzidakis, throughout a dialogue within the context of the seventh InvestGR Discussion board 2024: Charting the Future, was requested by the Financial Put up about the potential of an extension within the submission of tax returns and he referred to the process and the variety of those that have submitted to this point, primarily stating that he’s glad with the info to this point, even stressing that if this price of submission continues, the accountants will be capable of cope till the scheduled deadline for all of the statements.

Nonetheless, for now, he doesn’t depart any room for an extension, though it’s already heard within the corridors of Karageorgis Serbia that it’s most probably that a number of days shall be given a minimum of till the tip of the month in order that hundreds of taxpayers don’t face fines for late submission.

The fines

In reality, as accountants report back to the Monetary Put up, particularly professionals and companies favor to submit the VAT return on time relatively than the revenue tax, and it’s because the VAT effective is far greater than the 100 euros to 500 euros of the late revenue tax return.

Notably:

– A effective of 100 euros is imposed on overdue preliminary declarations of pure individuals, no matter the results of the liquidation, i.e. whether or not it’s zero, credit score or debit. When the preliminary overdue declaration is debited, a penalty of 0.73% is imposed for every month of delay from the due date of tax cost.

– A effective of 100 euros is imposed on overdue preliminary statements of people and authorized entities that maintain aplographic books, that are credit score or zero, whereas a effective of 250 euros is imposed on debit preliminary statements.

– A effective of 100 euros is imposed on overdue preliminary statements of people and authorized entities that maintain duplicate books, that are credit score or zero, whereas a effective of 500 euros is imposed on debit preliminary statements.

The information to this point

Nonetheless, from the info to this point, it has emerged that out of a complete of 6,550,000 tax returns, 5,070,854 returns have been submitted. Of those, 2,389,895 returns (47.1% of the full) have zero settlement, so taxpayers will neither pay an quantity nor accumulate. However, nevertheless, 1,636,364 (33.2% of the full) tax returns have been cleared and the result’s a debt, which implies that they are going to be requested to pay a median tax of 1,519 euros, fairly greater in comparison with the corresponding returns final yr.

The tax refund

2 out of 10 taxpayers shall be fortunate as they’ve obtained a credit score report and due to this fact may have a tax refund which to this point is on common 314 euros and issues 1,044,595 tax returns.

Lastly, it’s price noting that to this point the full further tax ensuing for 1,636,364 tax declarations with a settlement observe quantities to 2.48 billion euros and for 1,044,595 declarations with a credit score settlement the full refunded quantity is 327.5 million euros .

Tax returns: The “x-ray” of 2024 – anxious for an extension

– 5,070,854 statements have been submitted

– In sooner or later: 112,000 statements have been submitted

– In 8 days: 1,530,000 declarations to be submitted (common 191,000 declarations)

– Final day of submission: July 26

– Chance of extension: Small (few days)

– 5 out of 10 statements: Zero settlement

– 3 out of 10 declarations: Fee of a median tax of €1,519

– 2 out of 10 declarations: Common tax refund of €314

Supply: ot.gr

#Tax #declarations #deadline #expires #Accountants #disaster #extension

July 21, 2024 0 comments
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Yen market worth quickly rises to a low of 157 yen – market intervention by the federal government / BOJ |

by Chief editor of world-today-news.com July 12, 2024
written by Chief editor of world-today-news.com

On the New York international trade market on the twelfth, the expansion within the US wholesale worth index for the previous month, introduced that day, exceeded market expectations, and remained yen trade charge, after falling barely, within the excessive vary of 158 yen. to the greenback.

Nonetheless, after that, the yen appreciated quickly, and at one level the worth rose by about 1.50 yen to a low of 157 yen to the greenback.

Within the international trade market, after the US shopper worth index was introduced on the eleventh, the day earlier than, the federal government and the Financial institution of Japan appeared to have intervened out there, and the yen was to quick appreciating the low of 157 yen at one level.

Then, within the Tokyo market on the twelfth, there was a powerful transfer to promote the rising yen, however within the New York market, the yen once more went in the direction of appreciation, which led to intervention market with the federal government and the Financial institution of Japan for the second day in a row.

A market supply stated, “After the announcement of the wholesale worth index, the yen appreciated shortly regardless of the shortage of merchandise that may give hints for commerce, it isn’t potential to cease the depreciation of the yen.” It’s not clear whether or not this may occur or not.”

2024-07-12 16:54:01
#Yen #market #worth #quickly #rises #yen #market #intervention #authorities #BOJ

July 12, 2024 0 comments
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Tax returns: The “thorns” – What issues stay – 2024-07-08 15:30:27

by Chief editor of world-today-news.com July 8, 2024
written by Chief editor of world-today-news.com

The issues in tax returns are identified in an announcement by the Panhellenic Federation of Tax Technicians (POFEE), stressing that on July 2 the much-discussed automated submission of “pre-filled” returns occurred, which had been initially introduced by the ministry that they’d attain roughly 1,300,000 , however in the end 423,000 returns had been submitted.

As he states, “because of this by July 26, i.e. in lower than 20 working days, roughly 2,500,000 declarations should be submitted, plus any amendments crucial for people who had been submitted robotically, after the existence of deficiencies and inaccurate info was discovered.

Allow us to remind you that with a press launch of our Federation issued on 15/5/2024 we highlighted particular issues that had been recognized, and which created an issue within the appropriate submission of the statements and made it not possible to satisfy their submission schedule. Our function was to formally inform the providers, the Ministry of Finance and the AADE, but additionally our fellow Accountants and Tax Technicians.

Issues with tax returns

Actuality vindicated us as with A.1092/13-6-2024, it was deemed crucial to increase the deadline for submitting the tax returns of authorized entities till July 26, 2024, which we repeat is just not adequate.

Aiming to tell the providers, the Ministry of Finance, the AADE, but additionally the brand new Deputy Minister of Finance, and naturally our fellow Accountants – Tax Technicians, we think about it our responsibility to publish an up to date listing of issues, with the indication of the time decision the place it has been carried out, as we they’ve been reported by Accountants – Tax Technicians from our 52 member associations, in addition to fellow Accountants – Tax Technicians all through Greece, because the starting of the tax declaration interval.

  • Unable to print statements (Resolved 4/27).
  • The results of the liquidation was credit score even in non-credit (Resolved 4/27).
  • Not updating the system with youngster profit (Resolved 1/5).
  • Refundable down cost on 727 not accomplished (Resolved in Might).
  • The kid who’s obliged to submit a declaration can not submit a declaration except the guardian submits first (Resolved 4/27).
  • Incorrect rates of interest on deposits and loans (there are nonetheless studies of incorrect rates of interest from some banks).
  • Not updating the system with social solidarity earnings (Resolved 5/13).
  • OPEKEPE has not posted certificates on its website, so as to make the entries within the books (Resolved 2/5).
  • The Ministry of Rural Improvement and the Ministry of Tradition had been late in posting wage certificates (Resolved in mid-June).
  • It was said that in desk 6 of E1, a taxpayer can’t be declared as a camper (Resolved 5/13).
  • Reported that code 781 on clearance doesn’t cowl presumptions – incorrect clearance calculation (Resolved mid-June).
  • Errors detected in loss carry ahead of earlier years – considerations agricultural companies (Resolved mid-June).
  • Automobiles in circulation in 2023, not seen in E1 (Such studies nonetheless exist).
  • There have been many complaints of seniors being compelled to go to banks to open accounts to get an account quantity (IBAN) (Resolved 11/6).
  • The posting of allowances for the pre-work program remains to be pending from DYPA.
  • Settlements with lower than 500 inhabitants are usually not acknowledged in instances the place the identify of the settlement, as said within the AADE register, is just not absolutely recognized with the identify of the settlement as reported within the Hellenic Statistical Service for the Census.
  • Incorrect down cost calculation on companies beginning in 2023 (Mounted in mid-June).
  • In case the claimant is the spouse, and there’s a youngster with a incapacity, the deduction was not acknowledged within the presumptive earnings (Resolved on the finish of June).
  • These pensioners who retroactively took from the Fairness Fund, weren’t included in code 269 (Resolved June 8). These retirees haven’t acquired a discover to proceed with submitting an amended tax return.
  • Many farmers are taxed within the presumptive manner on account of an issue of the KAD within the registry.
  • The system had not been up to date with the emergency monetary support given to pensioners in 2023 (Resolved June 7). These retirees haven’t acquired a discover to proceed with submitting an amended tax return.
  • The wage certificates of the long-term unemployed with the extraordinary monetary help they acquired in 2023 was not up to date. (Resolved June 7). No discover has been despatched for them to proceed with submitting an amended tax return.
  • Police pay certificates had been “modified” on June 18 and electoral allowance was added. No discover has been despatched for them to proceed with submitting an amended tax return.
  • Within the occasion {that a} self-employed particular person additionally had earnings from employed providers on account of constructing stamps (code 311), the system not solely doesn’t subtract the quantity from the presumed earnings, however after calculating the tax, it additionally provides the employed providers on account of an incorrect liquidation.
  • Within the Varieties N of non-profit enterprises, the sphere earnings from enterprise transactions was lacking/deleted when submitting the declaration. (Resolved early June).
  • On N-Varieties with losses from earlier years, the system didn’t calculate the loss from earlier years if the shape was not cached first (technical implementation drawback), leading to extreme time being misplaced as fellow Accountants – Taxes couldn’t detect the technical drawback of the system.
  • When submitting the N type, in case the companions’ distributed earnings are €0, it isn’t doable to submit the N type as a result of it can not settle for the quantity of €0.00 within the corresponding code (Technical software drawback). The issue can solely be overcome if the quantity of €0.01 is entered within the corresponding code, which makes the submission incorrect. No directive has been given by the Ministry of Finance, on account of which invaluable time is being misplaced by fellow Accountants – Tax Technicians in search of methods to beat this technical drawback of the applying.
  • If throughout the submission of the Tax Declaration it’s crucial to alter the info, the affirmation code from AADE has a delay of a number of hours.
  • For taxpayers who shouldn’t have an IBAN, obtainable appointments for many banks begin after August 1, each in small cities and huge city facilities.

The pre-filled tax returns

  • In Home Clearing Statements, there was a difficulty in desk 8 the place essential homes for which a Energy Cross had been taken in 2022 had been incorrectly posted, with no choice to delete or appropriate them.
  • Within the occasion that the guardian’s return was submitted robotically and the protected youngster had earnings within the 12 months 2023, the kid can not submit a Tax Return, as a result of it’s blocked by the guardian’s already submitted return. The guardian’s declaration can’t be amended. The result’s that the kid’s declaration can’t be submitted, as one declaration blocks the opposite.
  • Pre-filled tax returns had been submitted the place not all codes had been crammed in.
  • Pre-completed tax returns had been submitted the place vehicles had been lacking.
  • Pre-populated tax returns had been submitted the place the system incorrectly carried over residential women from final 12 months.
  • Pre-filled tax returns had been submitted the place the system incorrectly carried over hire payable from final 12 months.
  • Pre-completed tax returns had been submitted the place in lots of instances disabilities weren’t included.
  • Pre-filled tax returns had been submitted the place in no way had been property and automotive purchases included so long as they had been made inside 2023.
  • If a taxpayer didn’t have a registered IBAN, his tax return couldn’t be submitted. However within the case of home clearances, the declarations had been submitted robotically with out a registered IBAN. Since errors and omissions have been discovered, the amending tax return can’t be submitted for these instances, if no IBAN has been registered.
  • There are studies that there isn’t any indication in code 023 for the exemption from digital assortment of receipts of expenditure.

Along with the entire above, we wish to add that on July 1, the total implementation of the Digital Labor Card in industrial and retail enterprises started, with many issues there as effectively, which implies numerous further work and dealing hours for accounting places of work.

It also needs to be emphasised that the month of July is the month of VAT submission, the place amongst all the opposite issues, there was a change within the VAT type. This has created additional issues and malfunctions within the system, with all that it entails in man hours.

Our Federation insists on its place for the laws of a set time frame of 5 months for the submission of tax returns, as outlined by Legislation 4172/2013, whereas the publication of all related choices will likely be preceded, with out legislative adjustments within the interval for submission of tax returns, and after the general public providers have well timed and appropriately uploaded all of the required information. For any malfunction of the system there ought to be an equal extension of the tax declarations with out together with the month of August on this interval. A everlasting answer should lastly be offered, as we suggest.

We name on our scientific physique, the Financial Chamber of Greece, to step up its efforts to help this simply request of ours. The cooperation and help of the Chamber of Commerce is of essential significance for the achievement of our objectives, as solely by means of coordinated actions can we make sure the rights of Accountants – Tax Technicians.

Particularly for this 12 months and any more, to ensure that the submission of tax returns to be accomplished easily and in humane working situations, we suggest as the one doable deadline, for the tax returns of pure and authorized individuals, which will likely be submitted by an Accountant – Tax Technician holder of a authorized license, to be September 30, 2024.

In closing, we should point out that whereas article 67 of Legislation 5042/10-4-2023 permits the extension of deadlines for submitting tax and insurance coverage declarations and statements, within the occasion of sickness, childbirth or demise of a tax accountant, greater than a 12 months has handed and nonetheless the regulatory KYA has not been launched. We can not perceive this obstruction of the Ministries, which deny the now legislated proper of Accountants – Tax Technicians to illness. This drawback must be mounted instantly, in spite of everything, there’s a thorough proposal from POFEE”.

Supply: ot.gr

#Tax #returns #thorns #issues #stay

July 8, 2024 0 comments
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Diminished VAT: What we might see in our pocket-Why the federal government doesn’t determine it – 2024-07-02 06:10:11

by Chief editor of world-today-news.com July 2, 2024
written by Chief editor of world-today-news.com

The burning issues of on a regular basis life proceed to press the residents, with the accuracy of meals and fundamental items remaining a very powerful. Any interventions which have been made don’t appear to result in the entire de-escalation of excessive costs, and the controversy on the implementation of decreased VAT charges, as Spain and different international locations have finished, is consistently coming again to the fore.

The federal government seems adamant, having as its most important counter-argument to persistent requires a VAT lower the truth that the measure can have an inconsiderable fiscal price and secondarily insisting that such a transfer is of doubtful effectiveness, i.e. it is not going to “cross by” to retail costs and due to this fact to the ultimate client.

For his or her half, market operators have been repeating for a very long time {that a} figuring out issue for worth discrepancies in comparable merchandise is VAT. Thus, VAT charges stay at 13% and 24%, with the nation being above the European Union common, and this ends in costs hovering to ranges that almost all of customers can not afford.

What did Spain do?

Spain started making use of zero VAT from January 2023 to fundamental meals gadgets, which till then have been topic to a 4% VAT. On the similar time, it had decreased from 10% to five% the VAT on different meals, resembling oils and pasta, whereas final week the federal government of Pedro Sánchez introduced that from July 1 the VAT on olive oil can even be zero. In truth, the VAT discount measure was offered as one of the essential within the nation’s effort to fight the value disaster.

The bundle is shut to three billion euros and contains an extension of the zero VAT regime till September 30 for fundamental meals gadgets resembling bread, milk, fruit, greens and olive oil, in addition to tax reductions for low incomes. Specifically, the Spanish authorities estimates that the extension of the appliance of zero VAT will price the general public coffers 1.36 billion euros, whereas the discount of taxation will price one other 1.4 billion euros. These are strikes which can be a part of Madrid’s effort to assist particularly probably the most susceptible households, which have seen the price of fundamental client items, resembling meals, transfer to excessive ranges.

The Price range Workplace

Nevertheless, in Greece the State Price range Workplace within the Parliament (GPKB) appears to have a special opinion. In a particular chapter of his quarterly report on the Greek financial system, he factors out that the discount of VAT charges on sure classes of products, resembling meals, is just not an appropriate instrument for fixing the issue of accuracy.

Citing research which have been finished on VAT adjustments in EU member states during the last 15-20 years, GPKB emphasizes that solely 6% of VAT reductions spill over into last costs and this solely within the quick time period, in distinction to VAT will increase that are subtle within the last costs by roughly 34%. “This means that in some instances, the place the discount of VAT is adopted by a corresponding enhance, costs enhance disproportionately, which is on the expense of the patron.” On the similar time, he factors out that after a interval of 10 months following the VAT discount, client costs return to the degrees they have been earlier than. In truth, the GPKB report notes that the primary findings of a research specializing in the instance of Spain present that the just about full diffusion of the VAT discount within the first months recedes considerably inside 1 / 4. “Any impression on last client costs from a discount in VAT in Greece, if any, is anticipated to be smaller or a lot smaller in addition to extra short-lived than that in Spain,” the Price range Workplace provides.

The other

In distinction, a survey by the Central Financial institution of Spain exhibits that basically it took 2.5 months for the switch charge to succeed in 100%, with the opposition talking of “a bottleneck for the federal government that refuses to cut back VAT”. As well as, the conclusion of the analysis states that it compares the value evolution for the merchandise that participated within the measure (i.e. these topic to the tax coverage) with a management group (meals gadgets exterior the scope of the coverage) and the findings present that, in grocery store degree, the rollover was virtually full.

Oblique overtaxation

Talking to “Vima”, Panagiotis Liargovas, president of KEPE and the Nationwide Productiveness Council and a professor on the College of Peloponnese, emphasizes that “accuracy in our nation has dropped at the fore one of the essential financial points, which ought to severely concern the state: over-taxation”. On this case – in line with him – the query is whether or not the elevated costs of products and providers are due (amongst different issues) to the elevated tax burden. As he usually says, “it’s a incontrovertible fact that throughout the decade of the disaster, oblique taxation elevated considerably, tremendously decreasing the buying energy of households. Oblique taxes skyrocketed from 2012 onwards, changing into the state’s largest income. Greece now has the third highest VAT within the EU (24%), with consumption taxation proving to be probably the most dependable technique of tax income assortment. Rising tax charges raised costs, damage enterprise competitiveness, decreased incentives to work and produce, discouraged funding, and grew the shadow financial system. Trying on the knowledge on the construction of the tax system (see Income Statistics 2023, OECD), one can simply see that the tax techniques of developed international locations are primarily based extra on direct taxation and fewer on oblique taxation. The precise reverse occurs to us, clearly because of the excessive charges of VAT and VAT and insurance coverage contributions. The revenues from direct taxation are proportionally decrease” factors out the president of KEPE.

Income

On this context, in line with P. Liargova, “the share of VAT income within the whole tax income of Greece rose in 2021 to twenty.9% (in France it’s 16.4%) and to 18.3% for different taxes on consumption (from 10.7% in France). 32.8% got here from insurance coverage contributions (in comparison with 25.6% within the OECD), 4.5% got here from enterprise taxation (10.2% within the OECD) and 15.2% got here from the taxation of pure individuals. Lastly, earnings from actual property amounted to 7.4% of whole earnings (in comparison with 5.6% within the OECD).

For that reason, in line with the professor of the College of Peloponnese, “right now’s accuracy “requires” all of us to look once more on the construction and quantity of oblique taxation. Particularly when now we have repeatedly exceeded the targets of the first surpluses all through the final interval”.

In conclusion, P. Liargovas underlines that the problems that ought to obtain particular consideration within the case of reforming – decreasing oblique taxation (VAT, excise duties) are two: “(a) that this shall be handed on to customers and won’t be reaped by the companies and (b) that the fiscal stability is not going to be jeopardized. The reality is that the present construction of many particular person sectors of the Greek financial system (eg supermarkets, dairy, banking, vitality, non-public healthcare, and so on.) is oligopolistic.

Reforms

Right here the federal government ought to step up reforms, eradicating obstacles, opening markets and facilitating the entry of recent companies. However one thing like this takes time. Instantly, it ought to strengthen by all means the management mechanisms to forestall hypothesis and/or greed. As for the fiscal stability, this may very well be ensured if, concurrently the discount of taxes, we carried out a discount of non-salary bills. We may, for instance, evaluation from scratch the usefulness of all public organizations and merge or abolish these which can be underperforming or don’t present ample high quality providers to residents, with the goal of decreasing public spending.”

For his half, Panagiotis Petrakis, emeritus professor of Economics on the Division of Financial Sciences of EKPA, states that the horizontal measures to spice up demand, resembling e.g. the discount of VAT, are measures that may be thought of in occasions after we actually need to enhance demand. Nevertheless, as he emphasizes, “objectively, the Greek financial system on this interval appears to be on the verge of exhausting its potential output, i.e. its potential potential to supply. We should not have a niche in entrance of us, due to this fact from the standpoint of financial coverage in the meanwhile such a measure is just not up for dialogue. The difficulty of the horizontal discount of VAT is said to fiscal points and we must always calculate the indications and see if there are margins for this 12 months or for the next years, because the tax indicators in Greece are extraordinarily burdened”, notes P. Petrakis.

Lastly, the professor emeritus of EKPA provides that “actions regarding VAT could be made on particular merchandise, supplied that there’s a managed chain of distribution and manufacturing of the merchandise. If there are secure chains in order that the VAT discount is definitely handed on to the patron, then it may very well be thought of and have some impression. One other means may very well be subsidies on to the earnings of susceptible social teams as a substitute of decreasing costs.”

The third highest charge within the EU

Because the inflationary disaster has not solely hit Greece, it’s value recording what is occurring in different international locations of the Outdated Continent, with the common regular charge within the EU standing at 21.6%. Within the related record of EU member states, Hungary leads with 27%, Croatia, Denmark and Sweden with 25%, adopted by Greece and Finland with 24%. On the similar time, Luxembourg imposes the bottom customary VAT charge at 17%, adopted by Malta at 18%, whereas Cyprus, Germany and Romania have a VAT charge of 19%. For the 5 non-EU OECD European international locations, specifically Iceland, Norway, Switzerland, Turkey and the UK, it follows that solely Switzerland prices an ordinary charge of VAT beneath the EU minimal with a charge of 8.1%.

COORDINATION
Angelos Skordas

DILIGENCE
Panagiotis Sotiris

#Diminished #VAT #pocketWhy #authorities #determine

July 2, 2024 0 comments
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