Greek Government Provides Detail On Corporate Tax Reduction

by Ulrika Lomas, for LawAndTax-News.com, Brussels

15 November 2004

Speaking to reporters last week, Greek Economy Minister, George Alogoskoufis announced that the government will be cutting the corporate tax rate by 10% over the next three years in order to encourage investment and compensate for a decrease in government spending since the Olympic Games.

At a press conference held on Wednesday to showcase the tax reform plans, Mr Alogoskoufis revealed that the rate will be cut from 35% to 32% in 2005, falling to 29% in 2006 and 25% in 2007.

Whilst the Greek economy benefited from the massive amount of public investment needed to stage the Games, foreign investment was not so forthcoming. Observers have suggested that this was due in large part to the high level of taxation, which is almost on a par with Germany and France.

The announcement by the minister goes some way towards fulfilling a pledge by the conservative government, elected in March, to cut the country's tax rate substantially as the centrepiece of its economic reforms.

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