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Govt calculates higher collection rate for property tax as offsetting loss of revenue from reduction

By T. Tsiros
[email protected]

Greece’s finance ministry on Monday pointed to an increased collection rate for the property tax (ENFIA) after an average reduction of 22 percent kicks in as of Sept. 1, claiming that the rate will go from the current 74 to 75 percent, up to 81 to 82 percent.

Following an announced reduction of the unpopular property tax by the new government, the finance ministry leadership has repeatedly promised that no budget shortfall will be recorded as a result.

Despite the reduction, by pointing to an increased collection rate the Mitsotakis government calculates a collection exceeding two billion euros, out of the 2.5 billion euros that correspond to individuals and businesses.

The government also has high expectations from the revenue to be collected with a 120-month installment plan to cover arrears to the state owed by individuals and businesses, with an extra 215 million euros already flowing into state coffers even before more favorable terms – lower interest rate, incentives for early payment, more installments and a lower minimum monthly payment – commenced.