In addition to supporting social policy, the government has committed to channeling some of the extra revenues collected by combating tax evasion to the further reduction of taxes, Economy and Finance Minister Kostis Hatzidakis said to the Athens-Macedonian News Agency (ANA-MPA).
“Our effort to deal with tax evasion is constant and already producing significant results. Thanks to the 11 initiatives implemented, we have increased revenue collection. During the first half of the year, compared to the corresponding period last year, we had a 10.3% increase in VAT revenue, which is due both to growth but also to reducing tax evasion, through initiatives such as the interconnection of POS terminals with cash registers,” Hatzidakis stated.
He explained that all this was achieved without increasing taxes. On the contrary, taxes were reduced, he said, adding that the government aims to do the same next year, with 12 measures to reduce taxes and contributions. “We estimate that, thanks to the effort we are making to curb tax evasion, by 2027 we will gradually have an increase in state revenues of 2.5 billion euros per year. This is a hands-on reply to the social injustice generated by tax evasion.”
The minister stressed that reducing tax evasion is a key goal for the ministry, adding that “this is a tool for us, so that all those who pay their taxes properly, ultimately pay less taxes.”
He also revealed the government’s plan for the coming years, which includes the following strategies:
1. Lower social security contributions: The government plans an additional 0.5% reduction in social security contributions in 2027, which amounts to one percentage point.
2. Reduction of presumptive income taxation: As of 2026, a 30% reduction of such presumptive tax is planned, while the long-term goal is its complete abolition. This change is based on the implementation of digital tools to more accurately determine incomes and assets, with the aim of eliminating injustices against low-income citizens.
3. Abolition of the entrepreneurs’ levy in 2025 for freelance workers and one-person companies.
4. Reduction of standard VAT from 24% to 22% and reduced rate VAT from 13% to 11%.
5. Changes in income tax, especially for middle income earners.
For the implementation of the above, an important role will be played by the successful implementation of efforts by the Independent Authority for Public Revenues (AADE) to trace and prevent tax evasion.
