The government is turning its attention to the middle class and is planning the reduction of direct taxes from 2026.
Therefore, the Thessaloniki International Fair (TIF) in September is considered critical and one of the biggest “bets” of the four-year period, as the puzzle of financial benefits must be completed, but above all, the mark must be set for the rest of the term until the 2027 elections.
In this context, priority is expected to be given to consistent taxpayers, employees and pensioners, with the government estimating that only through tax relief can their permanent support be achieved.
The main criterion, of course, for the implementation of any new measures will be the maintenance of fiscal stability and discipline, especially at a time when international turmoil and “pending issues”, such as – for example – the issue of US tariffs on Europe, are reinforcing uncertainty and concern in the international environment.
Based on the above, the target for a package of measures of 1.5 billion euros remains stable, with 1 billion euros coming from the much better-than-expected performance of the budget in both revenue and expenditure, and 500 million euros being saved from the escape clause for defense spending.
Thus, the government’s economic staff is already working on proposals for tax cuts for the middle class, economic aid for vulnerable groups, and housing interventions, in order to make final decisions by the end of August.
The government’s goal is for the Prime Minister to present a package at the TIF focusing on the middle class and mainly taxpayers with incomes between 20,000 and 50,000 euros, while the following measures are already being considered:
- Tax reductions for middle incomes.
- Tax relief for families with children, including the scenario for an increase in the tax-free threshold.
- Granting new incentives to owners to put their vacant homes on the market, as well as new tax relief.
