Tax hikes foreseen by Greek government to cover fiscal gaps, as demanded by creditors, will reportedly include an increase in the lowest income tax co-efficient to 22.5 percent from the current 22 percent on yearly income of 20,000 euros. The figure was formerly 25,000 euros for the same tax percentage.
A deduction on income tax will drop 100 euros – from 2,100 to 2,000 euros – dropping another 100 euros for every 1,000 euros in additional income above 20K and until 40K. The tax-free ceiling for yearly income will also reportedly drop from 9,545 euros to 8,888.88 euros – a standing demand by creditors for a wider tax base downwards.
The tax rate on income between 20,001 to 25,000 euros will be raised to 29 percent from the current 22 percent, going up to a 37 percent from 32 percent on income between 30K and 40K; a whopping 45 percent from 32 percent on the 40K to 42K bracket, and 45 percent (from 42 percent) on income above 42K.
