New Tax Cuts on the Horizon: Government Targets Tax Evasion and Defense Spending Loopholes

The government is planning new tax cuts, armed with a strategy to combat tax evasion and exploit loopholes in defense spending. During Prime Minister Kyriakos Mitsotakis’s visit to the Ministry of Finance on March 17, 2025, both he and Finance Minister Kyriakos Pierakkakис emphasized the battle against tax evasion. This proven ‘recipe for success’ from the previous leadership at the Ministry of Finance has helped fill public coffers, achieving high primary surpluses. For 2024, these are expected to close at 3.5% instead of the projected 2.5%, as announced by outgoing Minister Kostis Hatzidakis ahead of final data in April. The emphasis from the prime minister and the new finance minister is no coincidence; the government aims not only to maintain current tax collection rates but also to intensify efforts throughout 2025. The 2025 budget sets an ambitious target requiring coordination and effective operation across all levels. Forecasts suggest that this year, the government will collect €69.2 billion in tax revenue, €2.5 billion more than in 2024. Advanced digital tools like myDATA, electronic receipts, and extended market checks will be crucial. Prime Minister Mitsotakis announced during his visit to the Ministry of Finance that citizens will benefit from this national success in combating tax evasion through either increased public investment or tax cuts, potentially including changes to tax brackets and living cost reductions. While the next package of income support measures and tax cuts is scheduled for September at the Economic Policy Conference (DETH), early interventions remain possible if they comply with fiscal rules.