Road tax hike for tu­ition VAT?

Gov­ern­ment is con­tem­plat­ing rais­ing ve­hi­cle levies to off­set can­cel­la­tion of pri­vate ed­u­ca­tion sur­charge

Kathimerini English - - Front Page - BY PROKOPIS HATZINIKOLAOU

The gov­ern­ment is now con­sid­er­ing re­plac­ing the value-added tax on pri­vate ed­u­ca­tion with an in­crease in road tax rev­enues. For now, the Fi­nance Min­istry in­tends to ex­tend the grace pe­riod for al­low­ing ed­u­ca­tional in­sti­tu­tions not to pay the 23 per­cent VAT un­til the gov­ern­ment has found ad­e­quate off­set­ting meas- ures, Al­ter­nate Min­is­ter Try­fon Alexiadis has de­cided.

The draft law that will reach Par­lia­ment in the com­ing days will in­clude clauses for the ex­ten­sion of the grace pe­riod for the VAT on ed­u­ca­tion, as well as amend­ing cus­toms leg­is­la­tion and for the in­cor­po­ra­tion of the Financial Crimes Squad (SDOE) into the Gen­eral Sec­re­tar­iat for Pub­lic Rev­enues fol­low­ing the dis­missal of gen­eral sec­re­tary Ka- te­rina Sav­vaidou. The min­istry also wants to have the road tax amend­ment seen ap­ply­ing as of 2016 ready for in­clu­sion in the up­com­ing draft law, pos­si­bly waiv­ing the tu­ition fee VAT.

The grace pe­riod for the ad­just­ment of pri­vate ed­u­ca­tional in­sti­tu­tions to the 23 per­cent VAT sys­tem (in other words the ap­pli­ca­tion of the mea­sure) will likely be ex­tended up to Novem­ber 20. This time the gov­ern­ment has cho­sen the par­lia­men­tary path for the ex­ten­sion, given that the pre­vi­ous in­ter­ven­tions were pre­car­i­ously close to vi­o­lat­ing the leg­is­la­tion that dic­tates a max­i­mum grace pe­riod of 10 days.

A top gov­ern­ment of­fi­cial said that dur­ing this new ex­ten­sion the gov­ern­ment will try to find off­set­ting mea­sures so as to abol­ish the VAT on ed­u­ca­tion al­to­gether, af­ter the Euro­pean Com­mis­sion re­fused to ap­prove the re­duced VAT rates

1.1061 of 6 per­cent and 13 per­cent the ed­u­ca­tion min­is­ter had spo­ken of.

Road tax rev­enues are ex­pected to in­crease through the tax hike on ex­pen­sive ve­hi­cles and on cars with large en­gines. Fur­ther­more, ve­hi­cles that were hith­erto ex­empt from road tax, such as diesel-pow­ered, elec­tric­ity-pow­ered or hy­brid cars as well as sev­eral cat­e­gories of mo­tor­cy­cles will now have to pay road tax for the first time.

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