What does research by the Center for Liberal Studies show?
Almost six months of the year they should work taxpayers to meet their obligations to the state as well payments to the tax office and EFKA “eat” 177 out of 365 days of the year. The abolition of the solidarity levy on workers’ wages from 1 January 2023 had the effect of reducing the working time required for households to pay taxes and insurance contributions.
According to the study of the Center for Liberal Studies (KEFiM) for the “Day of Tax Freedom” in 2023 to fulfill the obligations to tax and insurance funds, citizens worked 7 days less than in 2022 with the total working time being 177 days.
The data shows that the tax burden is decreasing from 2020, which is explained by the gradual reduction of tax rates and the abolition wearer as in 2020 it was 183, in 2021 it was 180, in 2022 it was 184 while in 2023 it was reduced to 177 days.
Based on the Center’s updated economic data, Tax Freedom Day finally came 6 days later than originally estimated, a correction that is mainly due to the 2023 tax outperformance, but which is not due to the imposition of new taxes.
According to the main findings of the study:
- June 27 was Tax Freedom Day for 2023, based on updated figures for tax and social security contributions. This year we worked for the state for 177 of the 365 days of the year, 7 days less than in 2022, a reduction achieved mainly due to the abolition of the solidarity tax from 1/1/2023.
- If the General Government deficit for 2023, which represents future taxes, is included, working days for the state in 2023 were 187, which is 7 days less than in 2022.
- Revenue from taxes and levies is up by 1.9% as a percentage of Net National Income, compared to the Stability Program forecast (April 2023), with the result that the tax burden is estimated to have increased by 6 working days for the state in relative to the original calculation of Tax Freedom Day. Commenting on the results of the study, the Executive Director of the Center for Liberal Studies Nikos Rompapas stated that “the fact that in 2023 we worked 7 days less than in 2022 to pay taxes and contributions to the state is a positive development. It is also positive that the outperformance of the state’s tax revenues is not due to the imposition of new taxes. The important thing now is that the reduction of the tax burden on Greek men and women continues, with the first step for the Government to utilize this recorded overperformance in this direction in the planning and implementation of the fiscal policy for 2024”.
