Greece’s new PM Mitsotakis to submit tax cut plan to parliament

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New Greek PM Kyriakos Mitsotakis takes power after Tsipras defeat

Greece’s newly elected Prime Minister Kyriakos Mitsotakis announced the Greek government will submit a bill to parliament in the coming weeks to cut taxes.

At his first cabinet meeting on Wednesday, Mitsotakis vowed to make government more efficient and to legislate for tax cuts later this month despite concerns raised by the country's creditors over economic promises made during the election campaign.

Although Greece no longer relies on funds from international bailouts, its economy is still under strict supervision and its partners in the 19-country eurozone have made clear that the fiscal goals agreed to by the previous government must be adhered to.

The country emerged from its third and final international bailout last year but has committed to meeting stringent targets for years to come, including producing an annual 3.5% annual primary surplus, the budget without interest on the debt until 2022.

New Democracy has pledged a series of tax cuts, including a reduction in corporate and income tax.

It wants to introduce a phased-in reduction in corporate tax to 24 percent in 2020, and 20 percent in 2021 from its present level of 28 percent. It also wants to cut dividend tax in half to 5 percent in 2020.

“I will be the first to be evaluated by the people,” he told his cabinet, which includes 50 ministers and deputy ministers, among them five women.

Ministers were given strict instructions to avoid potential conflicts of interest, including a ban on hiring first or second-degree relatives and on holding down any other job.

The new parliament will be sworn in next week following Sunday’s election.

*Source: AP and Reuters