Deputy Economy Minister Katerina Papanatsiou over the weekend revealed that self-employed professionals in the country will be eligible to seek recourse within an out-of-court settlement framework aimed to restructure arrears to pension funds and the tax bureau, similar to the provision included in pending draft legislation for businesses.
In comments to “N”, the relevant deputy minister referred to a draft bill being prepared for an out-of-court settlement framework to restructure debts to the state, banks and even third parties – a long-standing demand by creditors.
In reference to possible changes to the unpopular property tax (ENFIA), she claimed that the owners of lower value properties will benefit, as opposed to the owners of higher value properties, or with more real estate to their names. In an ominous reference to the latter, she cited “higher tax rates”.
Along those lines, Papanatsiou said a reduction, by 180 million euros, in the annual take of property tax revenue will not be extended to higher-income taxpayers, but will be spread out to low-income taxpayers and to people in possession of low-value properties, such as a small single-family dwelling purchased years ago.
The proposed 180-million-euro figure she mentioned is one of several countervailing measures that the current leftist Greek government managed to include in an agreement with creditors early last month. The latter foresees pension cuts in 2019 and a lowering of the annual tax-free income threshold for taxpayers in 2020. However, if the Greek state meets annual primary budget surplus targets after 2018, it can then proceed with countervailing or offsetting measures, such as the property tax reduction. Other such measures are mostly proposed increased welfare spending for lower-income households and individuals.
Given that both the finalized austerity measures, and accompanying and conditional countervailing measures, will mostly be implemented after scheduled general elections in 2019, whatever government is elected that year will find itself committed to the April 2017 deal with creditors.
Papanatsiou also told “N” that the government primary goal is to off-set the expected losses of lower-income pensioners and wage-earners from the next round of austerity measures, while admitting that the counterbalance will not reach a ratio of one-to-one.
