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Possible measures being considered by government

The Greek government and its lenders are rushing against time to clench an agreement for a new multi-bill of measures. The interim agreement that could be locked at the eleventh hour will include a number of reforms geared towards releasing 1 bln euros by May 12.

Sources state that German Chancellor Angela Merkel had told Prime Minister Alexis Tsipras that an interim agreement could be reached prior to June.

On the table are talks for:

Α. Tax measures

1. 1.5% extraordinary contribution for 500 high-level taxpayers. It is hoped that 200 mln euros can be gathered.

2. Solicarity contribution of 1-5% for those who have annual incomes more than 12,000 euros, and a 30% increase for those who earn 30,000 euros per annum. The previous government had planned a 30% reduction to this contribution compared to that of 2014.

3. Holiday tax

■ Nightly 3%-5% duty (or 1-5 euros a day) for luxury lodgings at the Aegean islands instead of a 16-23% VAT tax. Islands with under 3,100-4,100 residents would have a smaller duty imposed on them.
■ 3% tax on bars, nightclubs, luxury restaurants at the Aegean islands, but only during the summer season.ζόν.

4. Luxury tax

■ 6% to jewelers, designer clothes, art works.
■ An increase to luxury tax from 10%-13% on passenger cars, expensive real estate and swimming pools.

5. Credit card payments for transactions over 70 euros at Aegean islands with 3,100 to 4,100 + residents on a pilot basis.

6. Tax amnesty with a 15%-20% cost for undeclared money with taxpayers (a) retroactively lodging returns of tax payments of up to 10 years, and (b) 20% tax without fines for undeclared money taken abroad or 20% downpayment and new tax clearance for an installment of payments for those who have been found to have taken money abroad.

7. Electronic VAT payments

8. Bonuses for honest taxpayers

9. Independence to the Public Revenue office

Β. Labor – Social Security

1. A return to group contracts without fiscal cost to the state for the private sector.

2. An end to early pensions with only 2-3 heavy employment categories able to receive pensions before the ages of 60 or 62 years.

C. Privatization

A privatization list to include the port of Piraeus and port of Thessaloniki but the contracts will be for 51% rather than 67%. Privatization for the Greek Rail Organization and LARCO. Privatization for regional ports and airports are under discussions but the sale of the Public Power Corporation and water companies as well as Elliniko are off the table of discussions.

Which promises has the government broken?

* The single property ENFIA tax will not be abolished
* Salaries less than 12,000 euros will continue to be taxed
* The 13th pension Christmas bonus is under threat of cancellation for December 2015 for low pensioners
* Auxiliary pensions may still be cut, especially those for high pensions (eg. 300 euros or over)
* An increase to the pension age is still on the table of discussion, whereas early pensions are being cut apart from a couple of exceptions
* An increase to the minimum salary to 751 euros per month will not take place as yet and has been pushed to the future, leaving the minimum monthly salaries to just over 550 euros