By Vangelis Dourakis

Although at the Ministry of National Economy and Finance we had a “change of guard” with Kostis Hatzidakis to ‘deliver the baton’ to Kyriakos Pierrakakiswhat is not going to differentiate is the priorities: Certainly the new minister will add his own “touches” and “weigh” the pros and cons of each movement before the final decisions are made, however, it is a given that a “package” of measures will be formed.

The budget over -performance creates the necessary fiscal space for “benefits”, let alone when the margins expand with the application of the “escape clause” adopted by Europe, allowing the deficit to be included in the deficit.

What tax breaks does the new minister consider

At the moment on the government table – and of course in the hands of Kyriakos Pierrakakis – there are interventions related to direct taxation and focusing on middle incomes, which are thought to have pulled the whole paddle in difficult times (memorandums, coronary, energy crisis).

The list of changes in the income tax scale of natural persons, living presumptions, ENFIA, independent rental taxation, retirement solidarity levy and possibly abolishing the business fee and businesses. At the table and another reduction in insurance contributions by 0.5% or 1%.

Detailed designed:

– Tax scale pricing: This will face the phenomenon of losing several employees the “profits” they have from increasing their salaries due to higher taxes resulting from the change of scale and thus tax rate.

– Changes on the tax scale: Emphasis will be placed on the relief of the middle class, and in particular those with incomes of more than 20,000 euros. The suggestions made in this direction are:

-> Tax scale redesigning with the addition of new intermediate tax rates for income between 20,000 and 50,000 euros.

-> Increase in income above which the highest tax rate will be applied. Today the top tax rate of 44% is imposed on the part of the income exceeding 40,000 euros. There is talk of imposing this high rate on incomes of more than 50,000 euros.

– Changes to ENFIA: Review of tax surcharge for properties of more than 400,000 euros.

– “Haircut” by 30% of the living presumptions in the first phase and complete abolition over time.

– Solidarity levy: new interventions have fallen on the table after scale price

– Abolition of the business fee and for their businesses and branches.

When will the “package” of tax breaks be finalized

The list of tax breaks – based on the relevant “roadmap” – will have “closed” as the Thessaloniki International Exhibition and will be included in a tax bill, which will be tabled in Parliament in mid -October.

The exact size of the “package” will also be determined in relation to the exception of defense expenditure from the deficit. The final proposal by the Commission on defense spending is expected by the next Wednesday, March 19th.

The “scissors” in indirect taxes has not yet been warm into the “conversation”, however nothing is ruled out as long as the budget is underway by continuing to supply the available budgetary space in conjunction with the “gift” of the Commission for defensive costs, which can be more paid.

In any case, this “package” will focus on a portion of taxpayers who has been left out of any aid given during the crises caused by the pandemic and then the energy crisis that emerged after Russia’s invasion of Ukraine and had “survived” the Memorandum.

Whatever the case, sources from the Ministry of National Economy make it clear that any interventions will be funded exclusively by the over -performance of the economy and in no circumstances will not endanger the downward trend of public debt.

And of course the list will be enhanced for the years that the special “escape clause” for defense costs will be in place.