The continued excess in tax revenues in 2024 paves the way for a new round of tax cuts, with an emphasis on direct income taxes.
In combination with the fact that revenues from tax evasion will move to higher levels in 2024, at 1.9 to 2 billion euros compared to an initial estimate of 1.8 billion euros, it brings closer the achievement of the target of 2.5 billion euros in revenues by 2027.
In addition, within the year the “arsenal” of the Independent Authority for Public Revenue (AADE) will be strengthened through the gradual launch of a series of digital tools aimed at further modernizing tax administration and tackling tax evasion (digital customer list, electronic invoicing, digital consignment note).
“This year will be a year with significant further tax reductions for the middle class. Provided that international developments will not change things, this will allow us to reduce direct taxes,” Minister of National Economy and Finance Kostis Hatzidakis has recently stated.
Based on the fiscal space
The available fiscal space will form the basis of the negotiation that will begin between the economic staff and the Commission in the spring, when the 2024 figures will be finalized, while it will also be supplemented by the first figures for the revenues from tax evasion of this year. The discussion will continue in the coming months, as at the end of the summer there will be an opportunity to make estimates for the entire 2025.
If everything goes smoothly, in the early autumn, at the Thessaloniki International Fair (TIF), we should expect new announcements from the Prime Minister. “If things develop normally, or even a little worse than normal, as we are always conservative in our forecasts, we will proceed with further salary increases and tax cuts that will be announced by the Prime Minister in the autumn at the TIF,” pointed out Kostis Hatzidakis.
