The four axes of AADE’s planning to achieve the goal
“It is a commitment of the Government that, in addition to the support of social policy, a part of the increase in revenues that will come from the reduction of tax evasion will be directed to a further reduction of taxes”, emphasizes the Minister of National Economy and Finance Kostis in his statement to APE Hatzidakis, referring to the government’s general planning which aims to further limit tax evasion while simultaneously increasing public revenues.
As the minister characteristically notes, “our effort to deal with tax evasion is ongoing and is already producing significant results. Thanks to the 11 initiatives we put in place, we have increases in revenue collections. In fact, it is indicative that during the first half of the year compared to the corresponding period last year, we have an increase in VAT revenue by 10.3%, which is due to both the growth and the limitation of tax evasion through initiatives such as the interconnection of POS with cash registers”.
At the same time, he states that “all this without increasing taxes but on the contrary reducing tax burdens, as we aim to do next year with 12 interventions to reduce taxes and contributions. We estimate that, thanks to the effort we are making to limit tax evasion, until 2027, we will gradually have an increase in state revenues of the order of 2.5 billion euros per year. This is a tangible response to the social injustice generated by tax evasion.”
The main aim of the ministry is to limit tax evasion, which according to Mr. Hatzidakis “is a tool for us, so that all those who pay their taxes regularly, ultimately pay less taxes”. The ministry has drawn up a plan for the coming years, which includes the following important strategies:
1. Reduction of social security contributions: The government plans an additional 0.5% reduction in social security contributions in 2027, which amounts to one percentage point.
2. Reduction of subsistence allowances: From 2026, a 30% reduction of subsistence allowances is planned, while the long-term goal is their complete abolition. This change is based on the implementation of digital tools to more accurately determine incomes and assets, with the aim of eliminating injustices against citizens with low incomes.
3. Abolition of stipend fee: From 2025, the stipend fee will be abolished for freelancers (and those paid in blocks) and sole proprietorships.
4. VAT reduction: The government’s pre-election program foresees a reduction of the standard VAT rate from 24% to 22% and the reduced rate from 13% to 11%.
5. Changes in income tax: Plans for reductions in personal income tax, especially for middle income earners, are on the table, with the aim of providing relief to citizens.
For the implementation of the above, an important role will be played by the successful implementation of the planning of the AADE in the same direction, i.e. the limitation of tax evasion.
The plan drawn up by the commander of the AADE Giorgos Pitsilis, whose term will probably be renewed, focuses on the following axes of intervention:
* Utilization of modern technologies to identify risks of non-compliance and identify hidden taxable material.
* Central coordination of tax and customs audits to ensure efficiency and transparency in the process.
* Reorganization of control structures and processes to improve staff performance.
* Digitization of processes and strengthening of predictive models for early detection of criminal behavior.
According to government officials, the Strategic Plan 2025-2029 lays the groundwork for a more modern and fairer tax system. Its success will be key to achieving the government’s fiscal targets and delivering the tax relief it seeks.
