How much will be included in the prime minister’s speech in Thessaloniki and how much will be announced after the four-year budget plan 2025-2028, which must first be agreed with Brussels, will be finalized in the next two weeks. However, the TIF package will have the general direction more to reduce taxes and correct everyday problems and less to have the character of a “benefit package”.
According to information, the Prime Minister’s speech will contain several chapters on Health, Education, Security, Justice, as well as the Civil Protection chapter. The completion of the modernization of hospitals through TAA, the recruitment of 6,500 nursing staff, better policing, the delivery of Justice in a faster time within a completely different judicial system and the digitization of the State are on the agenda of this year’s TIF announcements. Also, a special chapter will be the completion of 85% of the “AEGIS” program for Civil Protection, as well as a new plan for the prevention of natural disasters from the climate crisis, which will be completed and will be implemented immediately.
Reliefs
At the level of reliefs, the reference point for the TIF package will be the continuation of the tax reduction program. In this field there are a total of 7 tax measures, of which two have already been announced since April and there is the possibility that they will be “enriched” or expanded. Specifically:
1 The first concerns the complete abolition of the pretense tax which started this year with its reduction by 50%, together, of course, with the imposition of the presumptive method of taxation for the self-employed. The measure can also be extended to those who are paid with a service invoice, i.e. the so-called “blockbusters”.
2 The second is the measure of reducing insurance contributions by 0.5%. Both Maximou and Brussels are particularly positive about the measure, since it also contributes to the increase in employment. For this reason, the reduction of insurance contributions for 2025 can be increased to 1%, if agreed with Brussels.
3 The third measure being considered in view of TIF is the reduction of the solidarity contribution for pensioners. The cost of the measure from the reduction of reserves starts from a few tens of million euros, which is the so-called fiscally neutral scenario, and reaches up to 163 million euros, which is also the biggest benefit for pensioners. In the direction of its application, two scenarios are considered:
A) To reduce by 50% the EAS from the auxiliary and to reduce by 20% or 25% the main pensions. In this case, losses from 127 million euros to 145 million euros are caused and the annual income of AKAGE (Insurance Fund for Solidarity of Generations) is between 345 million euros and 327
million euros.
B) The EAS should be completely abolished from the supplementary pensions and reduced by 15% in the main pensions. In this case, losses of 163 million euros are caused, and the revenues of AKAGE amount to 309 million euros.
4 The reduction of independent taxation of rents, in order to open “closed” houses that are not currently rented for tax reasons. It is recalled that for incomes above 12,000 euros the rate increases from 15% to 35% up to 35,000 euros and to 45% for rents from 35,001 euros and above.
5 The provision of tax incentives for families with many children, with the goal of equalizing the 200,000 three-child families with those with many children. Also, for new couples, the introduction of special tax exemptions is being considered, such as, for example, the VAT deduction for the purchase of baby items or increased tax refunds for a number of expenses incurred by a family since the birth of the child.
6 Consistent taxpayers are being considered for a tax reduction of 5% from 3% for those who pay income tax, ENFIA and social security contributions in a lump sum. In addition, a 50% interest rate reduction for future debts to the State is being considered as well as faster tax refunds.
7 At the same time, the Ministry of Finance is re-examining the tax incentives for takeovers, mergers and acquisitions of businesses in a special bill that will be forwarded to the Parliament.
EXPANSION OF BENEFICIARIES
The main axes of “My House 2”
A large part of the announcements will concern solutions for the housing problem, with the body of the so-called “My House 2”, which will essentially be the continuation of “My House 1”. The new program claims 2 billion euros in funding from the Recovery Fund and national resources and will expand the parameters of beneficiaries for ages up to 50, so it will also include families. The main axes of the program are the following:
- It will be addressed to citizens up to 50 years old and not up to 39, as today.
- The income criteria will be broadened to include more beneficiaries.
- The properties may be less than 15 years old.
A special provision of zero interest and full coverage will be taken from the state for those with three children and those with many children.
- Financing will be up to 90%. Today the income limit is €24,000 for the couple. while it increases by €3,000 per child. For the single-parent family, the income criterion increases to €27,000 and €3,000 per child. The average age of borrowers is 34 years with an average income of €16,000.
- “Renovate – Rent”: In September, the “corrections” to the “Renovate – Rent” program will be announced. After the… lukewarm reception of the program that subsidizes renovation work, so that closed properties can be made available by their owners for long-term lease, the relevant ministries have decided to expand the financial incentives, which will translate into an increase in the subsidy even in 6,000 euros per renovation of a closed property, with a part of the subsidy given in the form of an advance payment.
- Social benefit: At the same time, a list is drawn up of the State properties that will be given to private individuals, in order to implement the measure of social compensation. The first tender is expected to take place within the year and the aim is for the private person who will undertake the construction of the buildings to allocate a significant part of the built surface in order to house households with income and social criteria.
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