Prime Minister Kyriakos Mitsotakis took to TikTok to address concerns about the new Finance Ministry bill regarding the taxation of tips, firmly denying rumors that the government plans to tax tips across the board.
"The idea that the government suddenly wants to tax tips is completely false," Mr. Mitsotakis stated in the video, which has since gained significant attention.
The prime minister explained that under current regulations, tips received through electronic payments are already subject to taxation, a rule that became more relevant with the increase in cashless transactions after the COVID-19 pandemic.
As the government continues to encourage electronic payments, this issue has come to the forefront.
To clarify, Mr. Mitsotakis outlined the new regulation, which exempts tips up to €300 per month per worker from taxation, as long as they are paid via credit card.
Any amount above that threshold will be taxed. He emphasized that this approach aims to be fair, avoiding the creation of two classes of workers, especially since not all professions benefit from tips.
Mr. Mitsotakis went on to describe the solution as "fair and balanced" for those working in the hospitality sector, acknowledging that the industry is demanding and that tipping is a way to recognize hard work. However, he also issued a stern warning, saying the government would strictly monitor any attempts by workers to rely on tips to cover part of their salaries.
In a more light-hearted moment, Mr. Mitsotakis opened the video with a pun ("three tips for tips"), which he jokingly called "the worst one I've ever made," before diving into the detailed explanation of the new policy.
He concluded by reaffirming the government’s commitment to supporting hospitality workers through this balanced solution.