28/06/23

GREECE: Beating tax evasion becomes top priority

As published on: ekathimerini.com, Wednesday 28 June, 2023.

Dealing with tax evasion has entered the vocabulary of the government’s economic policy, at least at the level of statements of intent, after the related discussions during the pre-election period. New Minister of National Economy and Finance Kostis Hatzidakis highlighted it on Tuesday, during the ministry’s handover ceremony, saying it is a form of social injustice that must be addressed.

Speaking about his goals, he said that the government believes in lower tax rates and that “fighting tax evasion will help us reduce taxation further.”

“Tackling the gray economy is to the benefit of all citizens and businesses that respect the legislated rules,” Hatzidakis underscored.

Similar statements were made by Prime Minister Kyriakos Mitsotakis in the pre-election period, indirectly linking the fight against tax evasion with the eventual prospect of reducing VAT rates. However, in the meantime, another postponement has been granted to the interconnection of cash registers with card terminals and the tax administration.

Hatzidakis said that modern digital tools will help tackle tax evasion. Related reforms are also expected to be implemented with the financing of the Recovery Fund.

Hatzidakis, the new “economy czar” in the first-ranked ministry, with expanded responsibilities as it also includes public investments and related development tools, spoke about a clear direction the country is choosing: “The direction of modern solutions, of European reforms, of common sense.”

In this context, in addition to combating tax evasion and reducing taxation, he stated the following objectives: reducing the gap that separates Greece from the most advanced European countries in growth; adjustments to the country’s production model, addressing decade-old structural weaknesses and distortions; strengthening the banking system and trust relations between banks on the one hand and businesses and households on the other; the use of European resources and public investments; and the utilization of public assets.

His alternate, Nikos Papathanasis, will be in charge of all development tools, and in this context he spoke about the “crucial management of European resources.”Taxa

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Greece Tax Evasion