Prime Minister Kyriakos Mitsotakis on Thursday announced five measures to lower taxes and social security contributions for workers and businesses, during an online government meeting focusing on kickstarting the Greek economy.
"The government has proved that its enduring priority is the reduction of taxation before and during the pandemic but also after it. Our primary concern after fighting the health crisis is the rapid recovery of the economy and for this reason we are today announcing five measures that will act as the basis, the foundation, for a decisive recovery," Mitsotakis said.
He said the measures will allow companies that sustained losses during the pandemic to return to profitability and will also pump liquidity into the economy, as well as greatly increasing the prospects for a dynamic recovery and for attracting investments.
Among the planned measures is the permanent reduction from this year of the tax advance paid by individual entrepreneurs, from 100 pct to 55 pct, reversing the tax hikes imposed by the previous government. Also reduced is the tax advance for legal entities, from 100 pct to 70 pct in 2021 and then permanently to 80 percent from 2022.
He also announced a lowering of business tax rates to 22 pct, the reduction of social insurance contributions of private-sector employees by 3 percentage points in 2022 and an extension of the suspension of the special solidarity tax in the private sector to 2022.