They dried the market and now are not collecting VAT…

By Kostis Plantzos

The Finance ministry is looking for last resort solutions in front of the general collapse of public revenues. The January-February data, show great lag that surpasses the 600 mil euros (rate over 10%) against the memorandum targets, which forced the leadership of the Finance ministry into calling for a meeting on Tuesday in order to search for the reasons and attribute responsibilities.

Sources of the ministry noted that February was negative but a minor turn started to appear at the beginning of March and an impressive increase in revenue, which, if continued, might erase the bad picture of the revenues.

According to information however, Papakonstantinou seems to be asking for placement of responsibilities, via specific actions, for the directors of tax offices that have hit “red” on the revenue level. But even those offices that were thought of as “good”, were barely saved, while the future of the situation was described as bleak during the meeting.

Although the economy team is betting a lot in the collection of income tax in April, due to the new tax items, the data show very large reductions in tax offices of anonymous traders in Athens, Piraeus and Thessaloniki, but also in the tax office of anonymous industries that gather the major revenue pert due to their subject.

Respectively reduced is, according to the same sources, the revenue of customs offices.

Sources of the economy team attributed this adverse trend in other causes too, such as the limited revenue from the payroll tax because of “clipped” gifts. But it places great importance on the performance of the directors themselves.

Last January, large offices like KB’ Athens, Korinthos IRS and A’ Piraeus showed a decline in income and capital revenue from 18-70% while KA’ Athens, A’ Hrakleion Crete, Psihiko IRS and Ploion IRS increased their revenue up to 39%.

The situation in the centre of Athens is tragic with businesses in Metaksourgio, Vathi Square, Kolonos and Liosion looking as if they are closing down. With an order from above, Kolonaki is next in line for a fierce tax-hunt since the revenue from this area must increase drastically (at least 500 mil in the next 10 months).

The IRS offices that cover areas like Exarheia and Polytehneio with technical companies, engineers and architects, are a “red flag”, but mainly Glyfada, which, even though includes posh areas including Varkiza, does not show an increase of revenue.