New tax on prop­erty to add bur­den

Kathimerini English - - Front Page - BY PROKOPIS HATZINIKOLAOU

The govern­ment is plan­ning to in­tro­duce a new, and hefty, sin­gle tax on prop­erty as of 2014, which while broad­en­ing the tax base will add a sig­nif­i­cant bur­den on own­ers, as ev­ery piece of prop­erty will be taxed in­di­vid­u­ally.

This means, for ex­am­ple, that some­one own­ing a house and a farm will pay more tax in 2014 than this year. Tax­pay­ers who will ben­e­fit are those who own one prop­erty val­ued up to 150,000 eu­ros. All other cat­e­gories of own­ers will see their tax bur­den grow, and there will be no taxfree level.

The pro­posal put for­ward last week by the Fi­nance Min­istry pro­vides for the tax to be cal­cu­lated based on a rate of eu­ros per square me­ters for build­ings, fac­tor­ing in fea­tures such as zone rates, as well as for farms, even those cul­ti­vated by pro­fes­sional farm­ers. The only prop­erty own­ers to re­ceive and ex­emp­tion will be the long-term un­em­ployed and tax­pay­ers with in­comes be­low the poverty line.

Based on this sce­nario the min­istry will is­sue no­tices adding up to 3.16 bil­lion eu­ros of taxes, while the net sum ex­pected to be col­lected amounts to 2.7 bil­lion eu­ros. This tax will re­place the ex­ist­ing FAP prop­erty tax and the spe­cial prop­erty tax paid through elec­tric­ity bills.

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