Tax allowance and benefits will not be cut, Petsas reaffirms

Government spokesperson Stelios Petsas reaffirmed during a press briefing on Tuesday that the tax-free allowance will not be lowered and that welfare benefits will not be cut, repeating the prime minister's commitments to that effect.

According to the government spokesperson, the fast-track tax bill that introduces the changes to ENFIA and the 120-installment debt repayment framework, expected this week, will also introduce the new tax brackets for income tax, including a lowering of the base tax rate imposed on incomes of up to 10,000 euros to 9 pct, a reduction of taxes on dividends from 28 pct to 24 pct, and a 40 pct tax reduction for aesthetic and energy-efficiency improvements of buildings.

On the fiscal gap, he noted that "those who saw a fiscal gap were seeing a picture from the past".

"The previous government was following a policy of over-taxation. We will not continue it ... By restoring confidence in the Greek economy we will have growth - each euro of growth increases revenue by 0.5 euro - and there will be no budget gap", he argued.

Petsas reiterated that no welfare payments will be cut and that those receiving social benefits will continue to get them. For the 13th pension, he pointed out that "what was given by the previous government was not a 13th pension, but a pre-election allowance. However, it will continue to be granted in 2020 as a mechanism to support low-income pensioners".

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