The Greek government has announced a new bill packed with tax cuts and income support measures aimed at boosting citizens' finances and stimulating the economy.
The bill, which is currently under public consultation, delivers on promises made by Prime Minister Kyriakos Mitsotakis to reduce the tax burden and improve the lives of ordinary Greeks. Finance Minister Kostis Hatzidakis highlighted the key elements of the bill, which include 12 separate tax reductions and income-boosting measures.
"We are fulfilling our promise to return revenues from fighting tax evasion back to the people,"Mr. Hatzidakis said.
One of the most significant changes is the introduction of tax-free tips of up to €300 per month. This means that workers in the service industry will be able to keep more of their hard-earned income.
The bill also modernizes the tax system, streamlining the tax filing process and offering incentives for timely submissions.
To improve efficiency, the government is upgrading the Independent Public Revenue Authority (AADE) and introducing penalties for officials and companies that delay submitting necessary data.
The government is also keen on promoting business innovation and supporting startups with tax incentives for business mergers and acquisitions. There will also be expanded tax incentives for scientific and technological research and new tax deduction limits for business development and innovation. Importantly, the bill includes measures to enhance the Greek economy's resilience to climate change.
Deputy Finance Minister Christos Dimas emphasized the government's commitment to increasing citizens' income and improving their quality of life. He highlighted new incentives for businesses investing in research and innovation, as well as measures to support startups and streamline government transactions.
Dimas also announced a new tax reduction for freelancers in smaller communities, halving their taxable income.
"Our aim is to strengthen rural Greece, stimulate entrepreneurship, and revitalize local economies away from urban centers," he said.
The proposed reforms represent a significant effort by the Greek government to create a more investment-friendly and resilient economy with lower taxes and better opportunities for all.