Institutions Scrutinize Tax Evasion Revenues for New Tax Cuts

This week, institutions such as the European Commission, ECB, and ESM will closely examine the sustainability of revenues generated from combating tax evasion. They aim to determine if these additional funds can support permanent tax cuts and reductions in social contributions. According to ertnews, the focus is on whether the extra income from curbing tax evasion is stable enough to fund structural tax reforms benefiting the middle class. In 2024, additional revenues are estimated at approximately €2 billion, surpassing the budget target of €1.8 billion. Key factors driving this success include the expansion of electronic payments, POS integration with fiscal mechanisms, and the enforcement of objective tax documentation for professionals. Sectors like taxi services, car washes, agencies, and legal/medical services have seen a significant rise in electronic transactions—up over 600% compared to 2023. If confirmed that this revenue growth is sustainable, it could pave the way for substantial interventions in direct taxation, including reduced tax rates for individuals, a 30% pension relief on living proofs, and further cuts in insurance contributions. These discussions align with Greece’s post-program monitoring and will address various economic issues, from budget execution to public debt management.