Samaras and Stournaras meet with European partners in Brussels
04.12.2013
12:55
Troika asks to reincrease catering VAT to 23% believing the reduction at 13% has failed
Problems arose between the Greek government and its partners inside and outside of Greece. As the Christmas approach the negotiating 'fever' peaks as Samaras and Stournaras are under attack from Brussels and Washington.
Just 24 hours before leaving for Brussels today Antonis Samaras and Yannis Stournaras, Evangelos Venizelos and IMF have managed to open fronts with the government, while the two strong men of the Greek government were planning to have a political talk with Jose Manuel Barroso and the 28 EU Commissioners on matters relating to Greece.
From Washington, IMF sources said that the task of reducing the VAT in catering has failed and now ask for the return at 23% from 1.1.2014, otherwise there will be a new gap of 200-300 million euros in the State budget.
The Greek economic team did not want to raise the tones as it is already struggling with auctions, the single property tax and the measures of 2014. They argue, however, that so far the decrease has not failed since, despite the reduction in the VAT rate, VAT revenues in catering and other industries (except Oil, Gas) will be increased this year by 161 million euros. Instead, they emphasize that there has been a real debacle in the proceeds of VAT on fuel because of a 70% decrease in consumption caused due to the insistence of the Troika to increase the excise tax.
Meanwhile, the negotiations in Athens continue. Over the next twenty days there should be developments on two fronts:
- the government's consistency will be testes in parliament when ND and PASOK MPs will discuss and vote a) the new state budget b) the bill for a single property tax and the income tax code c) fines of Tax Procedures Code d) the auction bill
Just 24 hours before leaving for Brussels today Antonis Samaras and Yannis Stournaras, Evangelos Venizelos and IMF have managed to open fronts with the government, while the two strong men of the Greek government were planning to have a political talk with Jose Manuel Barroso and the 28 EU Commissioners on matters relating to Greece.
From Washington, IMF sources said that the task of reducing the VAT in catering has failed and now ask for the return at 23% from 1.1.2014, otherwise there will be a new gap of 200-300 million euros in the State budget.
The Greek economic team did not want to raise the tones as it is already struggling with auctions, the single property tax and the measures of 2014. They argue, however, that so far the decrease has not failed since, despite the reduction in the VAT rate, VAT revenues in catering and other industries (except Oil, Gas) will be increased this year by 161 million euros. Instead, they emphasize that there has been a real debacle in the proceeds of VAT on fuel because of a 70% decrease in consumption caused due to the insistence of the Troika to increase the excise tax.
Meanwhile, the negotiations in Athens continue. Over the next twenty days there should be developments on two fronts:
- the government's consistency will be testes in parliament when ND and PASOK MPs will discuss and vote a) the new state budget b) the bill for a single property tax and the income tax code c) fines of Tax Procedures Code d) the auction bill
- in negotiations with the Troika where they will need to reach an agreement on the prerequisites of the 1 billion euro dose from July. It seems the four prerequisites regarding this issue have been closed: maintaining the operation of the Defence Industries (EAS-ELVO) without orders from abroad, the mobility of civil servants this year, the new Code of Lawyers and the repayment of state institution debts to EYDAP and EYATH.
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