Parl’t re­port: No more taxes

Kathimerini English - - Focus - SOTIRIS NIKAS

Par­lia­ment’s State Bud­get Of­fice has is­sued a warn­ing to the gov­ern­ment that cit­i­zens can­not af­ford to pay any more taxes, and that in­creas­ing tax­a­tion will un­doubt­edly lead to a rise in tax eva­sion.

In its quar­terly re­port, Par­lia­ment’s fis­cal ex­perts also warn that the econ­omy could en­ter an even deeper re­ces­sion, al­though they do con­cede that it was bet­ter to sign the third bailout agree­ment than ex­tend the un­cer­tainty, or even al­low for a dis­or­derly de­fault. Still, the talks on changes to the mea­sures in the bailout pro­gram and the at­ti­tude of the op­po­si­tion are again feed­ing eco­nomic un­cer­tainty.

“The tax­pay­ing ca­pac­ity of re­li­able cit­i­zens has been ex­hausted, and the in­creases in tax rates and any new taxes could strengthen tax eva­sion,” Par­lia­ment’s econ­o­mists es­ti­mate. “There­fore the con­stant tax in­creases, es­pe­cially dur­ing a credit crunch, can­not be ef­fec­tive. They are strength­en­ing the re­ces­sion and can­cel­ing many in­vest­ment projects,” they add, point­ing to the ma­jor in­crease seen al­ready in ex­pired debts to the state. “In­ter­na­tional ex­pe­ri­ence shows that the suc­cess­ful ap­pli­ca­tion of re­forms is much more dif­fi­cult in an re­ces­sion­ary en­vi­ron­ment,” they say.

The re­port stresses that the econ­omy’s progress recorded over 2014 and the first half of 2015 has been re­versed, adding that “there is a risk the coun­try will slide into a deeper re­ces­sion or to­ward long-term stag­na­tion.” How­ever, it does es­ti­mate that this risk could be averted un­der cer­tain con­di­tions so that Greece could re­turn to growth in 2017.

The head of Rhodes hote­liers, An­to­nis Kam­bourakis, noted that un­like this year’s record ar­rivals on the is­land, next year may be par­tic­u­larly dif­fi­cult ow­ing to the gen­eral com­pe­ti­tion, the eco­nomic cri­sis, prob­lems with im­mi­grants and refugees, new taxes – es­pe­cially VAT – and the com­pe­ti­tion with il­le­gal ac­com­mo­da­tion.

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.