Government wants to lower ENFIA property tax and maximum tax rates

Deputy Finance Minister Giorgos Mavraganis on Monday, 3/11/2014, said the government is aiming at lowering the Uniform Real Estate Ownership…

Speaking at the 6th Thessaloniki Tax Forum, organized by the Tax Commission of the Greek-American Chamber

of Commerce, Mavraganis said the government could potentially use ENFIA to fund local government organisations.

"Our plans for the immediate future foresee a continuation in the lowering of tax burdens…utilising the stable fiscal balance, the creation of primary surpluses, a broader compliance and the transition to a period of growth which will allow (the implementation of) these measures,” Mavraganis said.

The minister specified that the government wants to lower ENFIA so as to generate revenue lower than 1 percent of GDP from 1.43 percent today and explore whether it can be turned into revenue for the local government.

The finance ministry is also considering cutting the maximum income tax rates for employees and pensioners to 32 percent from 42 percent and cut income tax rates for businesses.

Mavraganis also said the government also hopes to abolish data currently used to determine real income thanks to the information that has been collected for tax payers and the use of modern auditing tools, possibly for incomes declared in 2015.