Legislation on prior actions to be tabled in parliament

The draft legislation will focus on a package of tax measures, such as changes in VAT rates, raising an extra solidarity tax and changes in the taxation of farmers. More analytically, the government will introduce three VAT rates (6.0 pct, 13 pct and 23 pct), with the lowest rate including pharmaceuticals, books and theater tickets, the 13 pct rate will include all fresh foods, energy (PPC rates, natural gas), water and hotels, while the highest 23 pct rate will include all processed food, transport, restaurants, repair services, medical services.

The draft legislation will also envisage a gradual abolishing of a special VAT rate in Aegean islands, maintaining this status only to remote islands by the end of 2016. As a countermeasure the government will offer income support to the financially weaker citizens of these islands. The new legislation will also envisage raising a solidarity tax rate by 0.7 pct to 8.0 pct depending on income level, raising a luxury tax to 13 pct from 10 pct for vehicles with an engine of more than 2,500 cc, pools, aircraft and boats with a length of more than 5.0 metres. The government will also change taxation on farmers, raise a corporate tax rate to 28 pct from 26 pct and raise a tax advance payment for enterprises to 100 pct.