Reservations about unconstitutionality in the new tax bill

In its report accompanying the new tax bill that will be voted upon today, the parliamentary Scientific Committee raises questions of unconstitutionality about a number of measures that will apply to incomes that will be earned this year.

The concerns focus on the unequal treatment between taxpayers with identical amounts of income but from different sources. According to a report prepared by the department, the different treatment of individuals may not be compatible with the Constitution provision that "Greek citizens participate in public burdens without discrimination, depending on their strengths."

The Committee finds that the provisions of the bill cause injustices against taxpayers with low incomes, as higher tax burdens are imposed on taxpayers with a lower income from one source in comparison to taxpayers with a higher income that comes from several sources. Furthermore, it believes that the adoption of a 45,000-euro income limit for granting new benefits of 500 euros per year per child in large families is a violation of the Constitution.

As emphasized, "arrangements by which some large families are excluded from this special state welfare are in no way constitutionally permissible." However, it considers that the adoption of the income limit for granting the same allowance for families with three children is not against the Constitution.

The Scientific Committee expresses many reservations about the elimination of the tax-free income limit provided for in the new tax bill. It notes that this measure may not be compatible with the principle of taxation "based on one’s ability to pay taxes, the respect of human dignity and the obligation to protect the family and childhood."

It also challenges the validity of the measure for taxation of incomes below the minimum subsistence level and recalls that according to ELSTAT, the threshold of poverty risk per person is 5,951 euros per year.