The social groups that benefit from the Draft Law presented by the Ministry of Finance were pointed out by Mr Christos Staikouras.

In more detail the speech of the Minister of Finance in the Parliament:

Ladies and Gentlemen Colleagues,

The Draft Law confirms that the Government, consistently and methodically, is next to society, exhausting the existing – each time – budgetary limits and margins.

Almost the whole of society, but mainly the weaker economic strata, benefit from the provisions of the Bill under discussion.

1st. Pensioners benefit.

In particular, a one-time financial aid of 200-300 euros is established for pensioners who, due to personal differences, benefited little or not at all from the permanent increase of 7.75% that began to apply from January 1, 2023.

This aid covers more than 1.1 million pensioners.

The financial cost of the intervention amounts to 280 million euros.

2nd Farmers benefit.

Specifically, the return of the Special Consumption Tax on agricultural oil continues, also for 2023, with the aim of limiting increased production costs and supporting – as far as possible – agricultural production.

Arrangements are also introduced to speed up and facilitate the process of advance payment of a farm grant for damage to plant means of production, in order to support farms affected by natural disasters.

The financial cost of the intervention amounts to 76 million euros.

3rd. Companies active in specific sectors of the economy benefit.

In particular, the reduced VAT rate on passenger transport, coffee and non-alcoholic beverages, cinemas, gyms and dance schools is extended until the end of the year.

The financial cost of the intervention amounts to 246 million euros.

4th Vulnerable social groups benefit.

The reduced VAT rate for hemodialysis lines, defibrillators and personal hygiene and protection equipment is extended until the end of the year.

5th It benefits natural and legal persons who find it difficult to meet their obligations, but taking into account the need to maintain the payment culture, and with a sense of justice towards consistent taxpayers.

In particular, for those who have lost the tax and insurance arrangements of 72 or 120 installments or they became unserviceable until February 1, 2023, it is possible to revive them by paying 2 monthly installments until July 31, 2023, which repays old obligations, with order of seniority.

For those taxpayers who are consistent in their obligations and/or had settled tax and insurance debts on November 1, 2021, who continued to service them until today, but created new debts, a new scheme is created.

Thus, debts that became overdue after November 1, 2021 and until February 1, 2023, can be settled either in 36 or 72 installments.

6th They benefit natural persons, in their everyday life.

The payment of the personal income tax is made in eight installments, with the first until July 31, 2023, and if it is paid once, a 3% discount will be provided.

Also, the penalty for late income tax returns is abolished when the main debt, i.e. the resulting tax to be paid, amounts to up to 100 euros.

Finally, car or motorcycle owners are given the opportunity to immobilize their vehicles, paying the annual traffic fees based on the months after immobilization.

7th Officers of the Armed Forces and the Security Forces benefit, following an agreement with the relevant Ministries.

With a new salary regime, with new salary classifications, with salary scale increases for several of their executives.

The financial cost of the intervention amounts to 26 million euros.

8th LARCO employees benefit.

Specifically, as we had committed and agreed with the employees, the possibility of concluding fixed-term employment contracts is extended until the end of 2023.

At the same time, however, Ladies and Gentlemen, the Bill also contains provisions with a strong reformist character.

A 3-month extension is granted for filing new applications under the Income Tax Code regime to attract investors.
The incentives for choosing electronic invoicing by using the services of electronic data issuance providers are extended, also for the tax year 2023.
A specific withholding rate is provided for when a proof of awareness is granted for the transfer of real estate or the establishment of a real right over it.
Matters are regulated that facilitate property transfers and provide the possibility to implement the automatic creation of a digital statement of property details.
The issuance of goods movement documents is done digitally, significantly enhancing the documentation of movement of goods.
Actions of a digital nature are being legislated, with the aim of reducing smuggling and tax evasion, such as the mandatory interconnection of Electronic Funds Transfer terminals at the point of sale (EFT/POS) with the AADE, with the imposition of sanctions otherwise.
Ladies and Gentlemen Colleagues,

The total budgetary cost of these interventions exceeds 630 million euros.

At the same time, this year:

The solidarity levy was abolished, for all citizens.
The reduction of insurance contributions was made permanent.
The minimum wage was raised, bravely and realistically.
An allowance is granted to cover part of the citizen’s daily needs, with income, property and family criteria.
But how was this additional fiscal space found in the 1st quarter of the year?

1st. The economy is growing, according to ELSTAT’s provisional data, better than the estimates of the Budget.

In particular, GDP grew by around 6% in 2022, almost double the European average.

And this year, it is estimated to grow by 2.3%, much higher than the 1.8% we were supporting until recently.

2nd. The collection rate of assessed taxes has increased significantly in the last four years.

In fact, the most significant increase is observed in the collection of personal income tax, by almost 6.5 percentage points compared to 2018, with the result that it will reach 87% in 2022!

3rd. The increase in tax revenues is mainly due to the growth and reduction of tax evasion, as a result of the strengthening of electronic transactions and the reduction of tax rates.

Indicatively, according to the European Commission, the VAT “gap”, i.e. the difference between expected and actual VAT revenues, showed the 4th largest decrease in Europe, a trend that is expected to continue, at a faster pace.

This is an important development, with a direct and substantial impact on government revenues, on strengthening tax awareness, on increasing the competitiveness of businesses, on strengthening tax justice and social cohesion and above all, on ensuring the conditions for an even lower tax burden on citizens.

4th The fiscal outcome for 2022 is estimated to be better than the Budget forecasts, with a primary deficit of just over 1% of GDP in 2022.

This is the biggest fiscal improvement in Europe last year.

And this despite the fact that the set of support measures for Greek society was set at the third highest level – as a percentage of GDP – in Europe in 2022, and is being strengthened, depending on the existing – each time – fiscal space, without however hypothecating the necessary financial stability.

We continue the hard, prudent and effective work, in order to strengthen, even more, the sustainable development of the Greek economy, the disposable income of the citizens, the creation of new jobs and social cohesion.