Greece Mulls 'The Mother Of All Tax Reforms'

by Ulrika Lomas, Tax-News.com, Brussels

12 April 2002

Speaking to journalists on Wednesday, Greek Finance Minister, Nikos Christodoulakis revealed that the government is currently considering major changes to the country's tax regime in order to boost international competitiveness and economic activity.

'This is the mother of all reforms,' he announced, although he added that the proposals contained within the 206 page report formulated by a government-appointed committee, have not yet been finalised. There will now be a period of dialogue between the government, employers, and employee groups.

Among the proposed changes, according to Mr Christodoulakis, are an increase in the annual income tax exemption for individuals from 7,400 euros to 9,500, and the possible abolition of the 0.3% tax on stock transactions.

The report also recommends the introduction of a capital gains tax on securities, but in view of weak market conditions at the moment, advises that this be introduced at a later date.

The Greek Finance Minister explained to reporters that changes in the country's tax regime are long overdue: 'Greece's tax system dates from 50 years ago. Different changes have taken place since then but not to this depth.'

He concluded by observing that the Greek tax system, as it stands, is 'exceptionally complicated', and that simplification will be necessary in order to stamp out tax evasion, and thereby ensure the effectiveness of any reforms implemented.

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