Reduction of tax evasion – The scenarios of changes

The path to reliefs in the immediate opens up the fight against tax evasion with scenarios showing their review, according to ERTnews. Although an import rate of 9% for the first 10,000 euros of income does not appear to change, the next tax rate of 22%, which relates to the income scale of between 10,001 euros and 20,000 euros, is nevertheless being reviewed. The aim is to limit the ‘slip’ between the first two factors as the next ones escalate mildly (28%, 36%, 44%). For example, if the rate on the scale of EUR 10,001 to EUR 20,000 can be reduced to 15% from 22%, this will mean a reduction in the scale tax from EUR 2,200 to EUR 1,500, leading to an indirect wage increase of EUR 50 per month (for private sector workers with 14 salaries). As far as insurance contributions are concerned, a new reduction of 0.5% with a horizon of 2027 is under way. It is recalled that from 1 January 2025 insurance contributions will be reduced by one unit. Moreover, the reduction in living evidence by 30% is an election commitment by the government, aimed at eliminating distortions and injustices and the fairer distribution of tax burdens among households. Under the current regime, hundreds of thousands of citizens are invited to pay a higher tax than their income on the basis of presumed living costs such as cars, dwellings, goods markets, tuition fees in private schools, leisure boats, etc. The evidence shows that most taxpayers caught in the trap of living evidence are hired and retired mainly with low income paying extra taxes because they reside in a privately owned or leased residence and have a car. In 2027 it seems to be closing permanently the cycle of the End of the Profession, with its abolition and for businesses. The fee expires from 2025 for all natural persons (free professionals, self-employed, individual enterprises and ‘block workers’). At the table is also the abolition of the hypothetical way of taxing freelancers, as the digital era gradually closes the tax holes, causing a higher tax burden on those previously undertaxed. The limitation of tax evasion is also reflected in the data on the progress of tax revenue. In the nine-month period of 2024 an excess of around EUR 2.5 billion is recorded, with EUR 1.9 billion on the budget relating to the current budget and EUR 688 million on the basis of greater VAT receipts, increased electronic transactions and the interconnection of cash with POS. Most changes in direct taxation will be implemented by the incomes of 2026. It is worth noting that under the new rules of the Stability Pact tax relief funding should be based on extra revenue that will flow into the state funds from the disclosure of hidden income.