In September the announcements
Budget “air” are looking for the government in order to be able to make a new reduction in taxationas Prime Minister Kyriakos Mitsotakis has repeatedly stated.
Indeed, last Monday, during his visit to the Ministry of National Economy and Finance, where he worked with the new Minister Kyriakos Pierrakakis and the political leadership, he was more clearly saying, declaring. How the benefits of the battle against tax evasion will soon be perceived by citizens, which triggered the scenarios for decision -making in the summer and announcements in September from the Thessaloniki International Report.
According to the budget execution data for the first two months of 2025, tax revenue is over 0.5 billion, which raises expectations that this year, both from the effort to combat tax evasion and from growth, the economy can give permanently and steady revenue, Taxation for citizens.
There will be a better picture in the summer when the elements from the course of tourism begin to be incorporated. The government has already decided to allocate any fiscal space in 2025, with the aim of reducing direct taxes, with particular emphasis on the middle class. Adaptation to the tax scale will mainly concern incomes of up to 40,000 euros a year, with an emphasis on the segment between EUR 10,000 and 20,000 euros and then, if the circumstances allow, and the rest.
Former Minister of National Economy and Finance and current Deputy Prime Minister Kostis Hatzidakis has repeatedly stated that 2025 will be a year with significant tax cuts for the middle classwhile the announcements are expected by the Prime Minister at the TIF next September.
In the same direction, the current Minister Mr. Pierrakakis has moved in his first statements, stressing, inter alia, that “our ally in the effort to further reduce tax evasion and tax avoidance will be technology. We will use all its potential so that the new revenue can benefit citizens and businesses. “
In any case, however, what is the “sacred chalice” of the economic leadership is fiscal stability, which will in no way be in danger. Indeed, Mr. Pierrakakis stressed: “Never again”.
The process of tax changes is expected to begin in the summer of 2025, as soon as there are clear estimates of the fiscal space and the ability to apply tax relief. The calculation of tax evasion in 2024, which generated additional revenue of 2 billion euros, as well as the approval by the European Commission, will judge the final decisions. However, according to the new rules of the Stability Pact, any surplus of revenue should be approved by the Commission before being used for tax cuts.
The government seeks to support the middle incomes, which are affected by the increase in tax burdens without the corresponding increases such as on lower incomes, while making the tax scale more just through its price modernization.
The basic scenarios examined:
1. Reduce the tax rate for income from 10,001 to 20,000 euros: There is a reduction in the rate of 22% currently at a lower level with 15%, which will lead to a tax reduction of 700 euros and an increase in monthly income by € 50 for private employees.
2. Tax scale price: The aim is to relieve taxpayers with incomes of 20,000 to 40,000 euros, as the lack of price adjustment of the scale had led to increased tax burdens due to inflation.
3. Increase the limit for the maximum tax rate: Today, the tax rate of 44% is imposed on incomes of over 40,000 euros. The scenario predicts the increase in this threshold to reduce tax pressures on higher income.
4. Haircut of Documens: By 2026, a 30% reduction in living presumptions are expected to be implemented, with a gradual abolition in the coming years. This change aims to restore injustices and the fairer distribution of tax burdens, especially for employees and low -income retirees.
5. Reduction of insurance contributions: A new reduction in insurance contributions is planned by 0.5% in 2026, with the possibility of implementing this change and earlier, as tax revenue allows it.
In any case, however, everything will be weighted and decisions will be made after there is specific data from the course of tax revenue, at least for the first five months of the year.
