At the moment when accuracy persists, the government decided to make them permanent reduced VAT rates in specific services and products, as stated in an interview on the “Mega” television station by the deputy minister in addition to the prime minister, Thanasis Kontogeorgis,
Starting with the question because the VAT increased to 24% in refreshments, the deputy minister in addition to the prime minister reminded, first of all, that these measures were “temporary due to the pandemic” and were imposed “to support businesses and jobs. The main issue, then, was to avoid the sinking of society. In a difficult moment, in the midst of the pandemic, no one knew how it would develop”.
And, today, “despite the temporary nature, we, because of the growth dividend that has been created, we said that we keep the most popular ones: Transport, KTEL, metro, ferries. Like, for other reasons, the gyms, the cinema which has not returned to a normality”. Especially for soft drinks, “beyond the reasons for a healthier lifestyle”, the deputy minister clarified that the measure concerns what is served, on the contrary “in the supermarket you will not see a difference”. Therefore, “these have the least burden on the family budget.”
As he mentioned at a later point in the interview, “our effort from the beginning, in 2019, was to create conditions for growth, for the growth dividend to be distributed as fairly as possible, and for the distribution of burdens to be fairer.”
Regarding the Prime Minister’s visits to supermarkets, Mr. Kontogeorgis announced that they will continue. In them, Kyriakos Mitsotakis “frequently has dialogues with consumers and they exchange opinions”. Evaluating the help of consumers as “important”, he made it known that “several controls have the help of consumers because the platform for complaints is also used. Gradually we see that they are more informed and suspicious.”
As for the Black Fridaynoted that “we’ve been doing sample checks, we’ve taken prices from products to see how they’re going to move.”
“The main thing we do – and it is reflected in the budget – is structural interventions in the income of our fellow citizens from the development dividend. Civil servants, 1,500 euros on average per year. 3% increase in December pensions. Our main objective is to have permanent income measures in order, as much as we can, to reduce the consequences of accuracy”, he emphasized.
Regarding the fines, the Deputy Prime Minister pointed out that “6 million of the 8 million that have been imposed have been collected”. And from certain multinationals “we saw almost the next day that more products entered the permanent reduction program”. Ultimately, “prices are set by 4,000 codes, of which about 900 have entered the price reduction program. It’s important, it doesn’t solve the problem. We persist with controls, we persist with our regulatory role, we persist with income.” Regarding the question, whether it is being considered to apply the “Christmas Basket” again, he referred to the Ministry of Development.
“The numbers tell a large part of the truth,” was his opening comment on the subject of self-employment taxation. Emphasizing, thus, the twofold, tax reduction – fairer tax system, he reminded that “75% of taxes are paid by employees and pensioners, 50% of taxes by self-employed professionals are paid by 4% of them, one in two often declares zero income or losses. Are they all the same? No. There are exceptions, which are already reflected, such as where you live, where you practice law, if you are on the islands, if you are young, and therefore you have 5-6 years for the system to take effect”.
For the room for change stated that “already in the consultation they have submitted proposalsthe Ministry of Finance identifies the fields in which there may be some changes, without changing the core. Changes are being considered, this is the logic of the consultation.”
At this point, he left points to the opposition: “I hope that the parties will also position themselves, so far we have not heard anything realistic, we have heard tax-free at 12,000 euros. Let’s talk realistically, we want a fairer system for everyone to pay based on their tax ability.”
He also used another argument: “We give curator A a gross of 7.5 euros per shift, 4 euros net. We should find ways – as we are doing in this budget – to strengthen sectors that are really in great need or are on the edge.” After all, he added, “we must keep the doctors in the National Health System”.
“On electricity suppliers and producers we were the only country that imposed a 90% profit tax, the same was done on refineries”, noted Mr. Kontogeorgis to conclude: “We are interested in keeping a balance because this is what can bring long-term growth. From the growth dividend of 350 million, a few days before Christmas the disability benefit, the minimum guaranteed income will be paid […] these people really need them. It is our job to continue to do this in order to support those who are most in need.”
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