New taxation system ahead

Deputy Finance minister Y. Mavraganis heralds changes in tax laws and promises a new “friendly” taxation system with reasonable penalties and interest from 2013.

In an interview in “Naftemporiki” he says that there will be a new system of payment of overdue debts, the receipts system will be reversed, transfer taxes will be reduced, etc.

However, Mavraganis notes that “if we do not succeed in this endeavor that requires some time to yield results, but is also our last chance, we will then be driven to economic collapse and continue to penalize the consistent and honest taxpayers. We need to move along the logic of taxing those who do not declare their real income rather than increasing taxation for those who comply.”

Regarding the system of receipts, he indicates that it will not be eliminated but will become “much more targeted,” while for 2013 he said there won’t be any changes in the system.

Regarding the income criteria that may apply to tax relief and what their limit might be, above which they could be eliminated, Mavraganis said the economic team has not found a proposal so far.

In terms of the single property tax that will replace the hike through the PPC bills and the FAP, he said it should have the same effect on revenues, with fairer distribution of burdens, a broadened tax base and scaling of taxation.

Lastly, as concerns the equation from next October of the Special Consumption Tax on heating oil with diesel fuel, he said that "in order to support the poor, we will promote a heating allowance for social groups based on income, family and geographic criteria."