The role of inflation has been significantly reduced as it has registered a significant reduction from 9% two years ago to 2.5% today. Thus, the government is able to execute the budget consistently, meet the needs of the citizens and remain ready to deal with emergencies such as natural disasters.
“At the end of the journey, when you have dealt more fundamentally with the issue of tax evasion, you can reduce taxes and insurance contributions more. So, tackling tax evasion is not just a policy that has a social justice label. If you look at it from a liberal point of view, you can conclude that in the end you serve healthy entrepreneurship and investmentsbecause by facing this structural weakness of the Greek economy, you can have the scope to reductions in taxes and social security contributions» said Mr. Hatzidakis.
Asked about the possibility of a reduction in VAT ratesMr. Hatzidakis emphasized that “we must stand out in our country continuously, after the dramatic experience of the past decade, the popular from the populistreally pro-people than demagogic», while he emphasized that the proposal to reduce the VAT in Greece “has clear populist characteristics”. As he said, previous governments had proceeded with reductions in VAT rates without impressive results and without reaching consumers. “We don’t want to make the same mistake. We believe that in Spain, where it was done, it did not work. After all, there have been periods, recently, when in some months Greece had even lower inflation than Spain, without us having reduced the VAT”, he reported. At the same time, he emphasized that in Greece there is not the same flexibility as in other European countries due to the servicing of public debt and defense and pension costs. “All three of these make Greece a special case within Europe» he said, emphasizing that if these resources are missing, the burden will be borne by the Greek citizens.
Speaking about the initiatives to deal with inflation, Mr. Hatzidakis noted that “there are no magic recipes. Fortunately, the matter seems to be moving – unless something unexpected happens – in a de-escalation. In Greece we had 9% inflation in 2022, 4% in 2023 and now we are at 2.5%”. In this context, he recalled the moves the government has already made to help the citizens: “I am not only referring to DIMEA’s controls, nor to the fines that have been imposed. I also refer to the increase in the salaries of public and private employees. The increase in the minimum wage, despite some who insist on distorting the situation. It is well above the increase in inflation.”
Finally, referring to the new system taxation of the self-employedMr. Hatzidakis noted that «only three out of 10,000 self-employed people have gone on to dispute their income tax», stressing that until last night 386,000 self-employed professionals had submitted their tax returns and of those only 122 have proceeded to contest. “I understand that it is not a pleasant measure for some, but if taxation were so unfair, as long as there are opportunities to challenge, they would take advantage of them more”, he underlined saying that this year, after many decades the average worker and retiree will pay less tax than the average freelancer. Responding to whether there will be changes to the taxation system for the self-employed, he noted that the submission of tax returns has not yet been completed in order to examine the available options, but he emphasized that “the government, without being arrogant and indifferent, cannot at the same time adopt in its policy measures of social injustice. That is, he cannot under any circumstances come back and tell the pensioners and the workers that “you are the underdogs, because we are doing some calculations of political costs”. concluded.
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