Greece's economic support measures to reach 16.6 nln euros for 2021

The Finance Ministry clarified on Monday the measures announced by Prime Minister Kyriakos Mitsotakis in his speech in Thessaloniki over the weekend with Finance Minister Christos Staikouras highlighting that the total support for the current year will now reach level of 16.6 billion euros.

As Staikouras pointed out, the recovering economy, with a higher growth estimate of 5.9% this year, which, in fact, he claimed may prove to be conservative, offer the possibility for a series of measures that will help households and measures.

The minister pointed out "the return of the real economy to normal operating rates, with targeted support to households and businesses. In the second half of 2021, along with the restart of the economy, the government continues to strengthen society, with measures amounting to 4 billion euros."

Tax breaks

"The implementation of a prudent fiscal policy, in the direction of further reduction of taxes and insurance contributions, continues. We have already moved ahead with permanent tax cuts, therefore tax reductions that are valid for 2022 ", stressed the Minister of Finance, noting that to date the following has been announced:

• ENFIA has been decreased - on average - by 22%.
• The import tax rate on individuals decreased from 22% to 9%.
• The withholding tax rate on dividends was reduced from 10% to 5%.
• The tax advance for natural persons engaged in business activity was reduced from 100% to 55%, and for legal persons from 100% to 80%.
• Insurance contributions have decreased by 1 + 3 percentage points.
• There is a low tax rate for all agricultural schemes, amounting to 10%.

To these, the following are added:

1. The exemption from the special solidarity contribution of incomes from the private sector continues for 2022 as well.
2. For 2022, the reduction by 3 percentage points of insurance contributions has been extended.
3. The corporate income tax is further reduced - on a permanent basis - from 24% to 22%.
4. The application of the reduced VAT rates to transport, coffee and non-alcoholic beverages, cinemas and the tourist package is extended until June 2022.
5. The VAT rate has been reduced in gyms and dance schools, from 24% to 13%, until June 2022.
6. The suspension of the payment of the pay-TV fee has been extended until June 2022.
7. The tax on parental benefits – inheritances has been abolished, which concerns values up to 800,000 euros.
8. The mobile subscriber fee is reduced from 12% to 20% currently ranging to 10% and abolished for young people up to 29 years old, from 1 January 2022.
9. The VAT on animal feed intended for animal production is lower, on a permanent basis, from 13% to 6%.
10. After the adjustment of the objective tax values property, the Finance Ministry has proceeded with the reduction of the calculation coefficients of ENFIA, which will be valid for 2022. The results of this exercise, which is in progress, will be available at the end of the year. The exercise aims at a fairer distribution of the tax, with a parallel reduction of ENFIA for the majority of citizens, from the new year.