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With the slogan “it’s time for the majority” the Prime Minister, Alexis Tsipras, announced a series of positive and permanent economic measures, a couple of days ago.
Measures to be implemented from this year, 2019
– Reduction of FPA / VAT in restaurants from 24 to 13% (excluding beverages – drinks – alcohol) and transferring all food to the rate of 13% from 24%, with a total cost of about 260 million.
– Reduction of FPA / VAT on energy (electricity and gas) from the 13% rate to the overly-reduced 6%.
– Providing a permanent 13th pension with a total cost of € 800 million as follows:
– for pensions up to € 500, pensioners will receive an additional 100% of their pension.
– for pensions from € 501 to 600, pensioners will receive an additional 70% of their pension.
– for pensions from € 601-1000, pensioners will receive an additional 50% of their pension.
– for pensions above € 1,000, pensioners will receive an additional 30% of their pension.
Measures to be implemented in 2020 (if Syriza win the general election in October)
– Reduction of the Eisfores Allilengeis / Solidarity Contributions –
Abolition, from 1/1/2020, of solidarity contributions for income up to €20,000 and the reduction of solidarity contribution rates for incomes exceeding € 20,000.
Today the solidarity contribution is:
2% for incomes up to 20,000 and will be abolished.
5% for incomes up to 30,000, will become 2%.
6.5% for incomes up to 40.000, will become 4%.
7.5% for incomes up to 65.000, will become 6%.
9% for incomes up to 220,000, will become 8%.
– Increase in the investment depreciation rate to 150%
New investments receive overly-reduced costs in addition to the current 100% depreciation, an additional 50% of the annual depreciation, in the current life span (depending on the fixed asset investment element).
– Subsidy of insurance contributions of businesses and young workers
Subsidy of insurance contributions of businesses and young workers up to 25 years of age with 80%, both for the employer as well as for the employee, while for new employees up to 29 years of age the subsidy is determined at 25%, provided that these are full-time employment contracts.
– FPA / VAT reduction from 13% to 11%
Reduction of the FPA / VAT rate (goods and services) from 13% to 11% (categories restaurants, food, pharmaceuticals, medical equipment, water, hotel accommodation services, home care, agricultural production, retirement homes etc.).
– Tax reductions for island residents
Resetting the measure of reduced income tax for permanent resident of islands with a population of up to 3,100 inhabitants, as it was in force with the old Income Tax Code and the reduction of ENFIA on islands with a population of up to 1,000.
– Reduction of cooperatives tax to 10%
Reduction of cooperatives tax to 10% for all cooperatives irrespective of the sector.
– Cooperative-member farmers
10% discount on taxable income of cooperative-member farmers.
– Heating oil for mountain areas
Further reduction of heating costs for the mountainous areas of the country (Zones A and B).
– Discount of interest on mortgage loans from taxable income
Resetting of the measure for the exemption from interest on mortgage loans for the main residence, from taxable income as was the case with the old Income Tax Code.
These are the measures announced. Will have to wait and see if all are approved by the ‘institutions’, i.e. Greeces’ lenders.
