The Greek government has reached agreement with its creditors following its approval of key measures, which will be implemented in 2019 and 2020, including reducing the tax weight for businesses and individuals, opening jobs and supporting households.
Some of the measures are as following:
Revenues – Taxes –
-Reduction of tax rate for businesses to 26% from 29%
-Reduction of tax rates for individuals to 20% from 22%
-Reduction of unified property tax (ENFIA) by 200 million euros and recalculation in the immediate future, of property prices based on market value.
Expenses
-Rent subsidy
-Total amount is 600 million euros
-Will cover about half of the country’s households that live on rent or have a mortgage with a monthly subsidy which may reach up to 1,000 euros per year.
Family subsidy
-Increase by 260 million euros of the existing budget for family benefits
-Tackling child poverty
-Aim is to increase the benefit on the first and second child, while at the same time supporting those with three children
Jobs
-Creation of more than 30,000 new jobs
-Aim of program is productive reconstruction and halting the flight of young scientists (brain drain)
-It will concern both the public and private sector
-The company will commit to keeping the employee for six months after the expiration of the program
Public Investment Programs (PIP)
-Increase of the public investments program for rural production infrastructure (water supply networks, rural roads, irrigation channels etc.) as well as energy saving schemes for buildings.
Reducing solidarity levy
Income (per year) Levy due (%)
0 – 12,000 0% (same)
12,000 – 20,000 0% (from 2.2%)
20,001 – 30,000 0% (from 5.0%)
30,001 – 40,000 5.0% (from 6.5%)
40,001 – 65,000 7.0% (from 7.5%)
65,001 – 220,000 9.0% (same)
220,000 and up 10% (same)
