Greece, Long Synonymous With Tax Evasion, Says Its Crackdown Is Paying Off

For years, rampant tax dodging was shorthand for the dysfunction that brought Greece to the edge of bankruptcy. Now the government says it is turning that reputation around. It says it will collect an extra 9.1 billion euros ($10.5 billion) from 2024 through 2027.

Deputy Prime Minister Kostis Hatzidakis published

The government is preparing to campaign for national elections due next year on its economic record.

He said the extra revenue reached 1.76 billion euros in 2024 and 2.2 billion euros in 2025. He projected 2.5 billion euros this year and 2.7 billion euros in 2027. That means more than half of the total is still a forecast.

The clearest independent measure is the VAT gap, the value-added tax that goes uncollected. European Commission data show it fell from 24% in 2019 to about 9% in 2024.

That is roughly the EU average, and a striking shift for a country once near the bottom of the bloc's rankings.

The stakes go beyond the budget. Weak tax collection was a core grievance of the international creditors who financed Greece's three bailouts.

Credible revenue is central to the country's ability to cut taxes without reviving doubts about its debt, among the highest in Europe.

Mr. Hatzidakis was finance minister when the government adopted the measures in 2023, and they drew heavy criticism.

The measures include:

linking the cash registers of 490,000 businesses to card terminals

expanded digital invoicing

two-year closures for fuel stations caught smuggling

presumed minimum incomes for the self-employed

a 500-euro cap on cash payments

Investigators have also pursued high-profile cases.

The biggest involves Pizza Fan, the country's largest pizza delivery chain, accused of a 25 million-euro VAT scheme.

"We will not go to the elections with words, but with concrete and measurable results," Mr. Hatzidakis said.

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For years, rampant tax dodging was shorthand for the dysfunction that brought Greece to the edge of bankruptcy. Now the government says it is turning that reputation around. It says it will collect an extra 9.1 billion euros ($10.5 billion) from 2024 through 2027.

Deputy Prime Minister Kostis Hatzidakis published the figures this week.

The government is preparing to campaign for national elections due next year on its economic record.

He said the extra revenue reached 1.76 billion euros in 2024 and 2.2 billion euros in 2025. He projected 2.5 billion euros this year and 2.7 billion euros in 2027. That means more than half of the total is still a forecast.

The clearest independent measure is the VAT gap, the value-added tax that goes uncollected. European Commission data show it fell from 24% in 2019 to about 9% in 2024.

That is roughly the EU average, and a striking shift for a country once near the bottom of the bloc's rankings.

The stakes go beyond the budget. Weak tax collection was a core grievance of the international creditors who financed Greece's three bailouts.

Credible revenue is central to the country's ability to cut taxes without reviving doubts about its debt, among the highest in Europe.

Mr. Hatzidakis was finance minister when the government adopted the measures in 2023, and they drew heavy criticism.

The measures include:

linking the cash registers of 490,000 businesses to card terminals

expanded digital invoicing

two-year closures for fuel stations caught smuggling

presumed minimum incomes for the self-employed

a 500-euro cap on cash payments

Investigators have also pursued high-profile cases.

The biggest involves Pizza Fan, the country's largest pizza delivery chain, accused of a 25 million-euro VAT scheme.

"We will not go to the elections with words, but with concrete and measurable results," Mr. Hatzidakis said.

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