Over 7 Million Greeks See Tax Breaks Worth 3.87bln Euros

More than 7 million Greek taxpayers pay reduced income taxes, totaling a substantial 3.87 billion euros after taking advantage of tax exemptions and deductions, according to the Independent Authority for Public Revenue (AADE).

The accumulation of tax deductions and exemptions over the years has strained the public finances, with data from the Independent Authority for Public Revenue (AADE) up to September 30, 2023, showing there were currently 1,064 tax exemptions costing 15.557 billion euros.

Exemptions in capital taxation – property transfer tax, parental benefits, donations, inheritances, and ENFIA – amounting to 5.5 billion euros, was the most significant burden on the budget, costing the state 5.396 billion euros.

Thanks to the implementation of 206 tax exemptions and deductions, around 48,000 businesses leveraged relief from tax burdens to the tune of 1.84 billion euros, while nearly 4.9 million property owners saw a 76.5 million euros decrease in this year’s Single Property Tax (ENFIA) due to discounts and exemptions.

Recently, Bank of Greece Governor Yiannis Stournaras warned that the state was in “need of revenue” recommending the government reassess tax breaks to determine if those eligible actually “meet the criterion of assisting the most vulnerable”.

Tax Exemptions Breakdown

Tax exemptions constitute 25% of the budget’s tax revenues, with some of the notable breaks including:

• In income tax for individuals, 239 exemptions and deductions cost 5.39 billion euros. Over 10.2 million individuals used these exemptions, with 3.85 billion euros related to the tax-free threshold utilized by employees, pensioners, and farmers.
• In annual road tax, the total exemptions amount to 11.844 billion euros.
• In corporate income tax, 206 exemptions and deductions totaling 1.84 billion euros apply to 48,248 businesses.
• In capital taxation, 87 exemptions and deductions are applied. Exemptions in ENFIA, property transfer tax, parental benefits, donations, and inheritances cost the budget 5.5 billion euros.
• VAT saw 75 exemptions and tax reliefs, with the benefit for businesses, professionals, and consumers reaching 939.1 million euros.
• In Special Sales Tax, 43 exemptions amount to 1.047 billion euros.

Πηγή: tovima.com