Taxpayers in Greece got a welcome end-of-the-year fillip on Monday, as the center-right government announced that it was abolishing a so-called “solidarity tax” calculated on income derived in 2020 from leasing, dividends, business activities and capital gains.
The good news extends into 2021, when private sector wage-earners will also be relieved of the extra tax tacked on to regular income tax brackets.
The “solidarity tax” was levied on income exceeding 20,000 euros annually, and was one of the more unpopular levies imposed by the previous SYRIZA government as part of its “tax tsunami” in 2016-2017 – a policy that ravaged Greece’s middle classes in a bid to meet and exceed annual fiscal targets mandated in the third memorandum signed by the leftist-rightist coalition government in 2015.
