Of Chrysostom Chufi

The details of the budget plan confirms the… addiction to public funds in indirect taxes – which are the most unfair – and explain why it is so difficult for the government to have a rescue in the stakes for Reduction to VAT or EFK which are the main indirect taxes.

Indirect tax revenue is projected to increase by € 1.7 billion in 2026 while those from income tax of around € 740 million (which even come from the increase in business taxes rather than natural persons). The decrease in real estate revenue is very small, about € 100 million.

This is how the gap between them opens. In 2024 indirect taxes made up 54% of revenue. 2026 will be at 55.5%. In contrast, income taxes from 36.2% in 2024 will be marginally increased to 36.3%.

Nowhere in Europe does … thirst for indirect taxes is not so intense. The numbers are typical as for 2023 – these are the latest comparative elements available – in the eurozone countries the revenue from work – ie direct taxes – They corresponded to 51.2%on average, that is, in reverse a picture of what in our country.

In 2023, consumption taxes in Greece were found at 15.2% with the country behind Croatia. The rate will be reduced this year only, but only because the country’s GDP in 2023 is projected to have increased around 35 billion euros and because the revenue from the EFK has increased only € 500 million.

But the contribution of VAT can not be “masked”, nor is the big admitted growth of GDP. In 2023 VAT revenue in the country was 8.8% of GDP. In 2026 they will reach 11.1%, an increase of 26%. (In 2023 the state received 900m euros more VAT revenue than income tax. In 2026 the shear has almost tripled at 2.5 billion euros). Given that cumulative inflation in the country in the period 2023-2026 is expected to be 11%, it becomes clear how much the increase in consumption but also the important work of AADE In the fight against tax evasion. VAT vacuum – how much money is lost from VAT receipts – 2022 was at 13.7%, now expected to be below half.

And as the addicted does not change/or difficult to change… .Tarm so a Greek government will hardly do something… active on the part of indirect taxes. Especially when analyzes say that the benefit is almost never reached by the consumer.