A complete overhaul of the entire tax framework, with a focus on the middle class, as well as a review of the social benefits distribution mechanism, is being proposed by the Bank of Greece governor, Yannis Stournaras.
In an interview with public broadcaster ERT, he said that the next key milestone about interest rates is September, while he did not rule out the possibility of seeking a third term at the Bank of Greece.
He also stressed the need to find a solution for borrowers with loans in Swiss francs—without, however, compromising the capital adequacy of the banks.
Referring to taxation, Stournaras underlined that the time has come to review the tax system from scratch, as technology and everything else have changed. “Thank God, we have significant fiscal space; we are doing very well fiscally. Perhaps it’s time to begin examining, in a more scientific way, whether we can truly improve the efficiency of the tax system and enhance tax fairness through certain changes,” he stated.
Stournaras also referred to tax rates and tax exemptions—as well as social benefits—for potential reform. “We need a white paper here, as they say in the UK,” he noted, in order to identify what changes could be made to promote both economic growth and social justice. In any case, he clarified that any new system should shift in favor of wage earners: “Because right now, if anyone is being treated unfairly in Greece, it’s the wage earners. So, any changes should benefit wage earners and support labor.”
