Tax Hikes in fuel, cigarettes, mobile phone & pay Tv- charges.
The measures are locked and these will be borne by taxpayers through both direct taxation, but also by increasing indirect taxes on fuel, cigarettes, mobile phone etc.
Relevant legislation is expected to be formulated this week and presented to Parliament before Easter as the agreement must be completed by April 14, according to all sources. According to the VIMA newspaper article, it is recommended that 2.270.000 taxpayers with low income (from 9000 to 27000 euros) will be affected by the increase of taxes which will range from 70 to 176 euros annually. On the other hand 50000 clients with high income (over 45000 euros) will have excessive charges, since the rate is calculated based on the solidarity levy at 53% while for incomes over 100000 euro the rate reaches 56%.
The tax-free deductions were eliminated for almost everyone except people who have an annual income of less than 9,000 euros. Among others, the following also increased:
1. The excise tax on fuel by 5%. Practically the price of gasoline will increase by 4-5 cents per liter. What will happen to heating oil has not yet been decided.
2. Tax will be imposed on natural gas.
3.Cigarettes will cost 20 cents to 1 euro more.
4.The Single Property Tax will increase.
5.Car fees will increase, and will now be calculated based on the commercial value of the vehicle.
At the same time, the tax of five cents per entry for 13 OPAP lottery games will be replaced with equivalent income being generated by the activities of the organization and 24 companies. Mobile phone operators have undertaken to deliver additional revenue to the State by paying a special tax of five cents per user that will not be passed on to customers.
A similar agreement was made with pay- television companies, which will have to pay a fee for the number of their subscribers. Farmers, on the income they gain in 2016, will be taxed at 15% from 13% which was the rate last year (and 20% which was stipulated in the Memorandum of Understanding last summer).
Pensioners who receive a total of more than EUR 1400 will see reductions, which will only apply to supplementary pensions. The reduction in supplementary pensions of 170 euros and above, will start from 2% and will reach 40%.
Income from rents
Income up to EUR 12,000 will be taxed at a 15% rate. The rate of 33%, which is imposed today on rental income of over 12,000 euros to 35,000 euros, will increase to 35%. A new rate of 45% has been created for the income portion of over 35,000 euros.