The Prime Minister, Kyriakos Mitsotakis, announced today a new permanent reduction of ENFIA by 13%, a move that raises the overall tax reduction within four years by more than 30% of the pre-election commitment.
The reduction amounts to 350 million euros compared to 60 million euros that were entered in the budget and has the approval of the institutions.
The Prime Minister noted that with the new framework, eight out of 10 of our fellow citizens will pay even smaller ENFIAmany will pay the same amount, while a small minority, about 6%, will see a reasonable charge.
Charges will reportedly arise for a percentage of 6% of owners mainly in new areas that have joined the system of fair values, as well as for a portion of taxpayers with very large assets after the full integration of the additional tax in the owner.
The complete plan for real estate will be presented at 12 pm by the Minister of Finance, Christos Staikouras.
“Its core, however, is the significant decline of the basic tax on buildings, while in the plots the reduction reaches 50%. Thus, the greatest benefit arises for properties in middle and lower value zones. In other words, this is a clear choice in favor of the middle class and the weakest, “said the prime minister.
More specifically, Mr. Mitsotakis said that 30% relief will havehenceforth, real estate worth up to 100,000 euros instead of the 60,000 euros that was valid until now.
“The tax escalation is becoming fairer. The supplementary ENFIA, which ceases to exist, has also been integrated into it. While, as I said, the total reduction of the charges for the citizens amounts to 350,000,000 per year instead of the 70,000,000 that was foreseen by the budget “.
The whole statement of Kyriakos Mitsotakis
“The government is proceeding, today, with a new brave permanent reduction of ENFIA by 13%. It thus exceeds its commitment to a total relief of 30% of real estate taxation. A decision that is fair to society and beneficial to the economy. Which means that Greeks will now be required to pay, every year, 860,000,000 euros less than in 2018. And 350,000,000 less, only in 2022.
I feel the siege receiving the average income from international energy crisis and the price increases it causes as everywhere in Europe. That is why the State continues to cover part of the increases in electricity bills. He also insists on a steady de-escalation of taxes and levies to boost the disposable income of all households. And, on May 1, it will implement a second significant increase in the minimum wage.
With the new framework, 8 out of 10 of our fellow citizens will pay even less ENFIA. Many will pay the same amount. While, a small minority, about 6%, will see a reasonable burden. It is an elementary return to society as a whole, as the real value of property in some areas has doubled or even tripled.
Our complete plan for real estate will be presented shortly by the Minister of Finance. At its core, however, is the noticeable decline of the basic tax on buildings, while in the plots the reduction reaches 50%. Thus, the greatest benefit arises for properties in middle and lower value zones. In other words, this is a clear choice in favor of the middle class and the weakest.
Today, we proceed to a new brave permanent reduction of ENFIA by 13%. We continue to cover part of the increases in electricity bills due to the international energy crisis, while on May 1 we implement a second significant increase in the minimum wage. pic.twitter.com/MkoYG6GSMY
– Prime Minister GR (@PrimeministerGR) February 2, 2022
It is characteristic that from now on, the properties worth up to 100,000 euros will have a 30% relief instead of the 60,000 euros that was valid until now. The tax escalation becomes fairer. The supplementary ENFIA, which ceases to exist, has also been integrated into it. While, as I said, the total reduction of charges for citizens amounts to 350,000,000 per year instead of the 70,000,000 provided by the budget.
The new initiative is based on the consistent economic policy we follow and allows for additional additional relief measures. It works in combination with other permanent regulations, such as lower tax rates, the suspension of the Solidarity Contribution in the private sector and the zeroing of the tax on parental benefits. But also cumulatively, with extraordinary interventions such as the double Guaranteed Income of December and the increased benefits to the low-income retirees.
It is, however, a realistic move, which does not exceed the budgetary limits. Because every step forward must be done in a way that will not lead to two steps backwards. Thus, our country remained upright and developed during the two-year crisis. This is how it will deal, now, with the temporary global turmoil. The country is standing, but so are the citizens. “With our support and their own forces.”
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