As the value of card transactions gains more and more ground, there are two issues that are expected to be resolved by the new financial team. In an effort to tackle the “black economy”, the day after the June 25 elections, the provision of new tax incentives to boost electronic transactions will be examined as well as changing the way social benefits are paid.
The decisions taken for an additional tax deduction of up to 2,200 euros to taxpayers who carry out electronic transactions in 20 sectors did not have the expected results in the “battle” against tax evasion. Taxpayers continue to pay cash to certain professionals resulting in high tax evasion.
One of the reasons why this particular measure does not appear to have worked is the fact that the reduction in income tax earned by the taxpayer who requests and receives a receipt from certain categories of professionals is much less than the discount the professional makes to him on the final price if he doesn’t get a receipt.
According to data from the Bank of Greece, the total number of active payment cards in circulation reached 20.6 million in 2022, up by 4%, compared with 2021. The total number of card transactions reached 1.93 billion from 1.65 billion in 2021, up 16% compared with 2021. Debit cards continued to be the main substitute for the use of cash, accounting for 92% of the total number of transactions with all types of payment cards. As for the value of card transactions, it reached 94 billion euros, up 14% compared with 2021.
The second change is related to the payment of social benefits. Beneficiaries will be asked to redeem the amounts they receive through the allowances in businesses. This means that they will not be able to withdraw cash. The main goal of this measure is to spend the money in order to cover basic needs.
