October brings yet new taxes for Greeks

This week will see the ushering in of harsh laws which will slash Greek household income in order to fill state coffers. Some of the changes that have been voted on and need to be implemented immediately are: – Taxes worth 5 bln euros by the end of the year need to be collected. In October, taxpayers will need to pay income tax instalments, come up with funds to meet payments for new joint property tax (ENFIA) clearances and pay for debt resettlment as well as deal with increases in VAT. – Final decisions for 23% VAT hikes in institutions and private schools have yet to be announced. – Changes to tax investigations and fines are to be applied, whereas new requirements for car duties, income and leasing taxes, and the abolition of tax exemptions etc. are currently being prepared. – The legislation for the recapitalization of Greek banks, rules concerning foreclosures at the expense of those in debt and the administration of non-performing (so-called “red”) loans in foreign distress funds are on the table. The slashes are difficult in themselves, but they come at a time of turbulence following a clash between the Greek government with the General Secretariat of Public Revenue after Finance Minister Euclid Tsakalotos asked the general secretary for public revenues, Katerina Savvaidou, to step down after it emerged that she has been asked to appear before anti-corruption prosecutors next week to respond to questions concerning a second alleged case of breach of duty. Meanwhile, representatives of Greece’s creditors from the European Commission, European Central Bank, International Monetary Fund and the European Stability Mechanism are due to arrive in Greece, as is French President Francois Hollande. The strain of Greece’s debt management doesn’t add this week alone. More is in store over the coming months with January to March, 2016, particularly crucial as Greek lives beat to the tune of the new memorandum.