Extra relief for taxpayers
The 2023 draft budget, submitted in Parliament on Monday, provides for relief measures of 3.5 billion euros, which will lead to an increase in disposable income for taxpayers, while at the same time an additional amount of €1 billion is foreseen being made available to deal with the energy crisis, raising the interventions to €4.5 billion.
The permanent abolition of the solidarity levy, the maintenance of reduced social security contributions and the extension of low value-added tax rates are the measures that cost will cost the budget the most.
The positive course of revenues next year and the higher amounts of tax that will be paid by legal entities thanks to the growth of 2022, will allow the above interventions.
The budget specifically provides for the permanent abolition of the special solidarity levy for public servants, pensioners and the private sector (fiscal cost: €1.24 billion).
Reduced VAT rates are being maintained on passenger transport services, non-alcoholic beverages and beverage distribution services, cinema, theater and concert tickets, gyms and dance schools and the tourist package (cost: €246 million) as well as the suspension of VAT for new buildings (cost: €18 million).
The three-percentage point reduction of social security contributions of private sector employees will be maintained (cost: €871 million).
The budget also provides for a €1 billion fund to support households and businesses against the energy crisis. Of this amount, €700 million is earmarked for subsidizing households and businesses and the rest for general government agencies.
According to the draft, taxes next year will increase by €1.58 billion to reach €56.19 billion from €54.6 billion this year. The additional revenue compared to this year will come from indirect taxes and income tax, mainly of legal entities. Taxes on goods and services (indirect taxes) are projected to reach €32.14 billion, up €668 million compared to 2022, of which €563 million will come from increased VAT collections. Income tax is forecast to reach €17.24 billion, up €682 million compared to 2022.
As far as the ENFIA property tax is concerned, it will be maintained at the 2022 level of €2.38 billion.