Don’t play with VAT

Kathimerini English - - Front Page -

The slip­shod man­ner in which the gov­ern­ment takes de­ci­sions that af­fect thou­sands of fam­i­lies is truly in­fu­ri­at­ing. The back-and-forth over the im­po­si­tion of value-added tax on pri­vate ed­u­ca­tion shows that mea­sures are adopted in a panic with­out any­one hav­ing first cal­cu­lated what rev­enues they will bring in, who they will af­fect most and what the fall­out will be. The ex­pe­ri­ence of two pre­vi­ous me­moran­dums has shown us an­other as­pect that Greece’s cred­i­tors should bear in mind when push­ing for cer­tain mea­sures, and that is that tax hikes don’t al­ways work. They are of­ten shelved and some­times they even lead to a drop in rev­enues for the state. The usual tax dodgers in the mar­ket al­ways find a way around new levies or fig­ure out the loop­holes, the state col­lects less and the econ­omy sinks deeper into the red in­stead of be­com­ing health­ier. Tax pol­icy is not a mat­ter to take lightly and the gov­ern­ment needs to get se­ri­ous.

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