VAT freeze on construction for three years and the rest of the Greek Prime Ministers speech

The suspension for 3 years of VAT on all building permits issued from 1.1.2006 was announced by Prime Minister Kyriakos Mitsotakis at a dinner organized by Economist magazine.

Referring specifically to real estate that, as he said, are, in principle, the pledge of bank loans, the prime minister stressed that this market is already recovering as property prices in Greece rose by 7.7% in the second quarter. 2019 while talking about the need for bold measures to stimulate building activity and the real estate market.

New construction and those built in the last 14 years are exempt from VAT
“For the next three years, VAT is suspended on all new building permits, but also on older ones issued as of January 1, 2006. In other words, all new construction is exempt from value added tax, like the properties that have been built over the last 14 years and have not yet been sold. The new measure will also apply in cases of compensation. That is, the landowner will be exempt from paying the VAT for the apartments he will receive in return, ”he said, adding that the exemption would be made by any interested person with a simple application within six months.

Mitsotakis: I am sure the target for 3.5% surplus will be reduced
Expressing optimism about the course of the economy, the Prime Minister in his speech expressed his “strong assurance” that the target of the primary surplus of 3.5% of GDP would be reduced. “For the years 2021 and 2022 we have said that we will discuss with the partners 3.5% of the primary surplus. This will be done in 2020, when we have restored the country’s credibility and commitment to reforms. And today, I can express with great confidence that this debate will bring a good result for Greece, “said Mitsotakis.

Mitsotakis: “We defeated populism and demagogy”
Emphasizing that Greece leaves behind its indecision, the Prime Minister said that conditions for stability and progress in the country are being formed with Athens sending a message of realism, boldness and growth. “Having suffered a traumatic 10-year crisis, we now have the knowledge and the will, which are the raw material of determination. And, by defeating populism and demagogy, we can rely on the driving force of truth. one of the first to see its political system reconfigured with various emerging parties, pushing not only the political class and the economy, but also our society to the brink.

Mitsotakis in SYRIZA: Good Luck!
As he said, towards the end of 2014, when the country appeared to be in the glade, then the prevalence of populism took it back years. “We now know exactly what happened then and who is responsible for the great backlash of recent years. However, some want to erase their traces, and books are written and mouths are opened. Forgetting may be convenient for some, but even their old partners do not let them rest.

In these cases, therefore, in Greece we have a wish: “Good luck!” He said, noting that after the July elections “populism and establishment have been defeated and the country now has a strong government and a development plan”.

According to Mr. Mitsotakis, the country’s development will only be served by investments and development over a period of at least four years, which the government has said is guaranteed.

The prime minister presented his plan as a triangle where reforms are on one side, on the other a fiscal policy mix that, he said, will relieve heavy taxation on households and businesses without disturbing the need for fiscal discipline. and third, interventions in the banking system to reduce red loans and regain their role as growth financiers.

Mitsotakis: We unblocked the investments Hellenic, 
Speaking about the development bill already being passed in Parliament, Kyriakos Mitsotakis referred to provisions that reduce bureaucracy, removing barriers for investors by saying that the goal is for growth to come primarily from investment.

It even brought concrete examples of blocking investments, such as Hellenic, Eldorado Gold and Cosco. “Our slogan is ‘Development for All’. And we mean every effort that will serve it, with the cooperation of local communities, “he said.

Kyriakos Mitsotakis also referred to Infrastructure and Energy, citing the planned privatization of 30% of Athens International Airport and the exploitation of the ten regional ports, while reiterating that by 2028, the country would be dependent on lignite for production. Sources will cover 59% of electricity generation by 2030 while stimulating natural gas as a fuel-bridge to alternative forms.

Mitsotakis: “Now we know who is responsible for the great setbacks of recent years”
The Prime Minister emphasized the interventions in the labor market, which will soon, as he said, be the law of the state. “A company that faces problems can – with the agreement of employees – be excluded from sector contracts in order to continue operating and maintain jobs. We are fighting against undeclared employment and are providing incentives to make part-time work a full-time job, ”he said.

Speaking about fiscal policy, she has called for reduced taxation for businesses and citizens alike. As he pointed out, the Draft Budget already provides that corporate tax falls from 28% to 24% and then to 20% on dividends, the burden is reduced from 10% to 5% while insurance contributions are gradually reduced by 5%. % over a four-year horizon. For individuals, the introductory rate is reduced from 22% to 9%, while separate tax reliefs are given to young families and children.

How to expand the tax base
Kyriakos Mitsotakis also referred to the expansion of the tax base that will be done, as he said in three ways. First, through the revision of the objective values ​​on the basis of which ENFIA will be paid. He clarified, however, that his contribution to public revenue would be increased by a more equitable distribution, including in areas that, until now, were poorly taxed.

Second, the proportion of mandatory electronic transactions is increased to 30% of each taxpayer’s income, and third is the introduction of e-invoicing, a measure that will initially pilot.
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