By Chrysostomos Tsoufis
Her policy reducing the tax burden followed in recent years is beginning to have results. His latest report OECD it shows that the tax wedge in Greece (ie the amount of labor contributions and taxes) decreased by 2.2 points in 2021, which is the second largest decrease after that of the Czech Republic among the countries belonging to the Organization. So is the country retreated 2 places, in the 19th of 38, in terms of the burden of work with a tax wedge at 36.7%, nevertheless remains 2 points above average. For the record, champions are the Belgians who give 52.6% of their income in taxes and levies, followed by Germans and Austrians with 48%.
Greece even belongs to the countries that have from the lowest income taxationless than 10%, including Poland, Slovakia, Japan and Mexico.
However, all this does not mean that there is no room for improvement. For example The tax wedge in Greece for a couple with one employee and 2 children fell by 2.38 points mainly due to child benefits, but the country remains in 9th place. The net average tax rate of employees for an average married worker with two children in Greece was 18.1% in 2021, which is the 13th highest in the OECD, when the average is 13.1%. This means that an average married worker with two children in Greece had a salary, after taxes and family benefits, of 81.9% of his gross salary, compared to 86.9% of the OECD average.
On the negatives and that the average wage before taxes in Greece decreased by 0.4% in 2021, This happened in just 8 of the 38 countries in the study, including Ireland, the Netherlands, New Zealand and Korea.
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