Elimination of taxation items with… expenditure receipts

 

The government's plan provides for the replacement of taxation items from the actual living expenses (purchases, rent, charges for public utility bills, etc.) which will be reflected in the statement of assets that will accompany the tax return from 2013.

 

The electronic asset list which will reflect the taxpayer's property, income and all the data on deposits and investments in bonds, stocks etc. will be updated through the statement of assets. This will automatically result in the net disposable income passed for consumption on to the next year. The new stricter control system will apply to the entire property and savings of every taxpayer.

 

This measure will encourage taxpayers if they declare actual greater incomes. In contrast, however, it may deter others from asking for receipts, which will reduce the declared income. So the Finance ministry is planning two additional measures:

 

-          to stimulate the use of credit and debit cards in consumer spending in order to reduce cash payments and that these expenditures be recorded automatically in their entirety and be crosschecked with the turnovers of businesses

-          to establish additional incentives in 2013 to gather receipts from specific categories of professionals such as doctors, lawyers, engineers, electricians, plumbers etc.

 

Vice minister of Finance Yorgos Mavraganis said it might be possible to maintain tax cuts for taxpayers with an income up to 20,000 euros. For incomes from 20.000 to 40,000 euros the ministry is planning to cut the exemptions by 50%, while the highest income tax cuts will be eliminated.