Reactions to new tax and pension plan

Labor unions are planning industrial action, reacting to the new pension and tax scheme.

Greece’s main private sector union, GSEE, announced Tuesday that it will hold a 48-hour strike whenever the government submits its pension reform plan to Parliament.

The Panhellenic Seamen’s Union (PNO) also said on Monday that it too plans to stage a 48-hour strike when the pension reform bill is tabled in Parliament.

The new draft bill on taxation that came for deliberation Tuesday provides a 37 percent income tax and 7.5 percent contribution from citizens earning over 40,000 Euro per annum. Employees making between 750-800 Euros per month will be called to share a large burden, as the tax free threshold went to 9,100 Euros per annum from the previous 9,545. The new income tax scale includes:
-22% for the first 20,000 Euro income earnings
-29% for income earners in the 20,001 Euro bracket
-37% for incomes from 30,001 to 40,000 Euros
-45% for incomes over 40,000 Euros
Freelance professionals will be taxed according to the same tax brackets without the indirect taxation of the 9,100 Euros that comes about by the 2,000 Euro deduction.
The new solidarity contribution will also change:
-0% for incomes up to 12,000 Euros
-2.2% for incomes from 12,001-20,000 Euros
-5% for incomes from 20,001-30,000 Euros
-6.5% for incomes from 30,001-40,000 Euros
-7.5% for incomes from 40,001-65,000 Euros
-9% for incomes from 65,001-220,000 Euros
-10% for incomes over 220,001 Euros