The General Accounting Office of the State estimates that the tax system proposed by SYRIZA-PS will cost from 6 to 7.3 billion euros.

According to the GLK’s report, the annual reduction in revenues is estimated at 3.5 billion euros, while the cost from the reduction by 4.5 units of insurance contributions is estimated at 428 million euros in 2025 and reaches 1.7 billion euros in 2028.

The total annual cost of the measures included in the two law proposals of the official opposition (reduction of VAT and reduction of income tax rates, ENFIA, etc.) is estimated at at least 11.8 to 13.3 billion euros + 4.1 billion euros from the repeal of advance tax.

In detail, the report on the proposed law on income taxation states:

The proposed provisions have the following economic effects on the budget of the General Government:

1. Annual revenue reduction:

– 3.5 billion euros approximately, from the reduction of the proportional tax during the redetermination of the tax rates, on the basis of which the income acquired by natural persons is taxed, (articles 1-3)

– an estimated amount of approximately 323 million euros from the loss of certified income due to the redefinition of the method of calculation of the granted reduction (par. 2A of article 7 of Law 4223/2013) in EN.F.I.A. natural persons, (Article 4)

– in the amount of approximately 656 million euros, from the reduction of the proportional tax due to a reduction in the import rate of taxation, for income from property leases up to the amount of 12,000 euros, (Article 9)

– in the amount of approximately 600 million euros from the loss of certified income due to the repeal of the provisions regarding the taxation of the business activity of designated liable parties, with the method of the presumed minimum amount of net income, (Article 13)

– an estimated amount of approximately 120 million euros, from the abolition of the self-employment tax imposed on self-employed women and self-employed persons (Article 15)

2. Annual reduction of net revenues at the level of the General Government, due to the reduction by 4.5 percentage points, from 1.7.2024, of the insurance contributions of salaried employees in entities outside public services, decentralized administrations, etc.. This reduction is estimated to 428 million euros for 2025, to 855 million euros for 2026, to 1,283 million euros for 2027 and to 1,703 million euros for 2028 and subsequent years. (Article 14)

3. One-time loss of certified income: ⅰ) 404 million euros for natural persons and ⅱ) 3,772 million euros for legal persons from the abolition of advance payment of income tax. (articles 7 and 8)”.

With reference to the so-called countermeasures, the GLK estimates an increase in revenue of up to 2.7 billion euros:

4. Annual increase in certified revenues of approximately 496 million euros, from the imposition of additional EN.F.I.A. of Great Real Estate on the value of the mentioned rights. (Article 5)

5. Potential annual revenue increase:

– in the amount of approximately 2 million euros, from the increase in the proportional tax due to the redetermination of the taxation rates for the profits from business activity obtained by the specified legal persons and legal entities that keep diplographic or aplographic books, (article 6)

– in the amount of approximately 1.9 billion euros, from the increase in the proportional tax due to the redefinition of the method of taxation of the income resulting from dividends, interest and royalties. However, part of the above increase may be limited by the possible reduction of distributed dividends, since their distribution is at the company’s discretion (Article 10)

– in the amount of approximately 300 million euros, from the increase in the proportionate tax due to the redefinition of the method of taxation of the income from capital transfer capital gains. (Article 11).

SYRIZA sources: GLK confirms SYRIZA’s costing

Sources of the party confirm the costing of SYRIZA.

They state in detail:

“Regarding the measures of accuracy, the GLK almost completely confirms the costing of SYRIZA and refutes that of the Ministry of Finance (2.6 billion us, 2.7 billion the GLK and 4.2 billion the Ministry).

The difference that arises is because the GLA adds to 2024 the reduction of VAT from 24% to 21%, which in the SYRIZA law proposal starts at the earliest from 1/1/2025, i.e. after the completion of the measure of zero VAT in basic items.

It also does not count and does not include at all the revenues of 3.2 billion from the imposition of an extraordinary levy of 90% on the PROFITS of banks, refineries and energy companies for 2023, proposed by SYRIZA.”

Nikos Pappas: The numbers have nothing to do with reality

Fire against the government was launched from the peristyle of the Parliament by Nikos Pappas in view of the discussion at the level of political leaders to be precise.

The parliamentary representative and head of the Finance and Economy department of SYRIZA-PS, among other things, described Kyriakos Mitsotakis as “the architect of precision that preys on low incomes”.

The government perverts its way through costing because it wants to hide that it refuses to tax excess profits. To return surpluses to society and reduce indirect taxes” commented Nikos Pappas and added:

“He made the GLK to cost the SYRIZA-PS program, while yesterday’s bill by Kostas Skrekas was completely cost-free.”

At the same time, he said that “the numbers we have been reading since the morning that Mr. Mitsotakis will say about our program have nothing to do with reality.”