Thessaloniki International Fair – New relief measures to be announced by the Greek PM
Tax relief measures, youth support and support for households and businesses affected by the upcoming price hikes
The last details on the package of positive measures are expected to be announced by the Greek Prime Minister, Mr. Kyriakos Mitsotakis, from the podium of the Thessaloniki International Fair.
The new better GDP data of the second quarter gave confidence to the Greek government, the decision of which are guided by the recovery, considered as a given for this year.
The growth of the second quarter by 16.2%, as finally announced by the Hellenic Statistical Authority, creates additional fiscal space for the new tax relief package.
Initially, it was estimated at around 2 billion euros, while now it will be closer to 3 billion euros.
The targeting
The government’s targeting concerns the middle incomes, but also the support of the vulnerable households, which will be affected by the price hikes in product prices.
The government sends the message that their main goal is to boost investment and exports for the next years, while any space created by growth is mainly oriented towards tax cuts, contributions, but also the strengthening of young people.
At the same time, the government is preparing a measure – embankment for greater protection of financially vulnerable households from large increases in electricity bills.
According to the Greek site ot.gr, the political leadership of the Ministry of Environment and Energy in cooperation with the Regulatory Authority for Energy, is working on a scenario for a higher subsidy per kilowatt hour consumed by the 500,000 households that are beneficiaries of the Social Housing Tariff (CTO).
The measures that the Prime Minister is expected to announce, according to information, are the following:
Tax reliefs
-Suspension of the solidarity levy in 2022 for the private sector
-Extension of the reduction of social security contributions by three percentage points and a new reduction of 1.1 percentage points
-Reduction of the corporate tax rate from 24% to 22% within 2022 and from 22% to 20% for 2023
-Additional average weighting of ENFIA by 8%
-Incentives to increase electronic transactions
– Incentives for mergers, which will lead to reduced tax rates of even 50%
-Extension of “BRIDGE 1” for 3 months for those already included in the program
Price increase relief
-Expansion of the reduced VAT, 13%, to transport, coffee and non-alcoholic beverages, to cinemas and theatrical performances and to the tourist package.
-Abolition of the excise duty in coffee
-Expansion of the beneficiaries of the social residential tariff
-Enhanced heating allowance
Youngsters
-Training programs for the labor market
-Resources through the Recovery Fund and the NSRF will be directed to the integration of more young people in the labor market
-Subsidy for start-up companies
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