VAT reduces on food to 13%, half-pension and more announced by Tsipras


Trying to get away from the difficult – for himself and his government – conjuncture, Alexis Tsipras , 19 days before the European and local elections, announced a package of tax cuts due to a motion of censure and “clergy” .

From Zappeion, in a dirty style the prime minister, announced benefits with a look at the polls. However, the climate has remained “frozen”, apparently due to the revelations about the “crumbly” holidays with the yacht of the ship owner Periklis Panagopoulos . As he confessed at the press conference to journalists, “I do not see you all happy, although the measures are positive.”

In essence, for this year, Alexis Tsipras has reported a reduction in VAT on the focus and energy and the granting … of a 13th pension within the month.

The remaining announcements were referred for … of the year, as SYRIZA won the elections.More specifically, the measures to be implemented from this year, ie by 2019, include the provision of a permanent 13th pension, the reduction of VAT on the focus and the reduction of VAT on energy.

The remaining measures are referred to in 2020. These include, among other things, the reduction of the solidarity levy, the reduction of the VAT rate (goods and services) from 13% to 11%, tax reductions for island residents and further reduction of heating costs for mountainous areas , but also an increase in the depreciation of investment at 150%.

Measures for 2019
Reduce VAT on the focus from 24% to 13% and shift all foods to 13% (from 24%) with a total cost of about 260 million.
Reduce the VAT on energy (electricity and gas) from the 13% rate to the 6% hyper-factor. Measure per household and business.
Providing a permanent 13th pension totaling € 800 million
What about the “half” 13th pension
Especially for the provision of a permanent 13th pension announced by the Prime Minister, the total cost of the measure will reach 800 million. The amount will correspond to an extra pension for the low pensioners, while the percentage will be reduced for the larger pensions, explained Mr. Tsipras.

More specifically, according to the Prime Minister’s announcements, the amount of the 13th pension will be as follows:

For pensions up to 500 Euros will amount to 100% of the pension
For pensions of 501-600 euros, 70% of the pension
For pensions 601-1,000 euros in 50% of the pension
For pensions over € 1,000 it will account for 30% of the pension
As for when the 13th pension will be paid, Labor Minister Efi Aichioglu said that “for 2019 it will be immediately enacted and paid within the month”, while he added that the design is such that “the 13th pension will be paid about such a period “.

Which measures are being referred for 2020?
For 2020, Alexis Tsipras said, the total package of measures resulting from the space that is being created anyway, as well as securing additional space from the reshaping of the primary surplus, is about EUR 1.3 billion, if we take into account and the impact of the permanent measures of 2019.

Reduction of Solidarity Fee
Abolishing from 1/1/2020 a solidarity income injection of up to € 20,000 and a radical reduction in solidarity contribution rates for incomes over € 20,000, a measure of substantial tax cuts for employed and self-employed.

Today is 2% the solidarity levy for incomes up to 20,000, will be 0%, will be abolished. It is 5% for incomes up to 30,000, it will become 2%. It is 6.5% for up to 40.000, it will become 4%. It is 7.5% for incomes up to 65.000 will become 6%. It is 9% for incomes up to 220,000, it will become 8%.

Increase of depreciation on investment to 150%.
New investments are over-deducted in excess of today’s depreciation of 100%, in addition to 50% in annual depreciation, in current life (depending on the fixed asset). investing within five years in industrial and technological equipment in all sectors in order to stimulate investment activity. In addition, business tax is reduced. The decrease is accelerated: in 2021 to 25%

Subsistence of business and young workers’ contributions
Subsidies for insurance contributions of enterprises and young workers up to 25 years with 80% for both the employer and the employee while for young people

Reduce VAT on the focus from 24 to 13% (excluding beverages – beverages – alcohol) and transferring all foods to 13% (from 24%) with a total cost of about 260 million.
Reduce the VAT on energy (electricity and gas) from the 13% rate to the 6% hyper-factor. Measure per household and business.
Providing a permanent 13th pension totaling € 800 million

up to 29 years old, the subsidy is set at 25% in the case of full-time contracts. The measure is obviously an incentive to create quality jobs, while at the same time increasing wages and boosting businesses.

VAT reduction from 13% to 11%
Reduce the VAT rate (goods and services) from 13% to 11% (food, food, pharmaceutical, medical, water, hotel, home, lowering commodity prices and stimulating consumption.

Tax reductions for island residents
Reset a resident income tax relief measure with a population of up to 3,100 inhabitants as it was in force with the old Income Tax Code and a reduction in ENFA on islands with a population of up to 1,000 for the purpose of reducing the tax burden on border areas.

Reduction of cooperative tax to 10%
Reduction of cooperative tax to 10% for all cooperatives irrespective of the industry as an incentive to strengthen the cooperative economy model.

Associated farmers
Discount 10% of the taxable income of cooperative farmers to further strengthen the model of the cooperative economy in the agricultural sector.

Heating oil for mountain areas
Further reduce the heating costs for mountain areas in the country (Zones A and B) to make it clear to help people living in areas where the heating requirement is different because of the altitude.

Discount from taxable interest income on mortgage loans
Resetting a first-time homeowner’s interest-exemption measure to taxable income as it was with the old Income Tax Code, for the purpose of rewarding by reducing the tax burden on first homeowners with a green home loan.

Tsipras: Given tax cut in 2020
“It is clear that there will be no tax cut in 2020. We have already tabled in Brussels the government’s plan for 2020 without reducing duty-free,” said Prime Minister Alexis Tsipras and said their plan is for less austerity and more growth .

At the same time, he accused the president of ND Kyriakos Mitsotakis is like trying to break open doors when he talks about the issue of reducing duty-free.

Tsipras: When will the national elections become
The Prime Minister noted that the government is asking tomorrow for the vote of confidence of the Greek Parliament and for this project we will ask for the vote of confidence of the Greek people on 26 May and, of course, its final approval to implement it in the beginning of next October.

Asked about the time of the national elections, Mr. Tsipras said: “I think I was clear about the time of the elections. Two times I said in my speech I said first that we are not in a pre-election period in its narrow sense, we are 5.5 months before the national elections. So I have determined the time of the national elections. ”

Source- iefimerida.gr 

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