A new package of economic measures for 2025 that will include lower taxes and contributions and higher pensions was announced at Delphi Economic Forum by National Economy & Finance Minister Kostis Hatzidakis on Wednesday.
The package, worth 870 million euros, will include the following:
– Further lowering of social insurance contributions by 0.5% (cost: 215 million euros)
– Full abolition of the proportional tax (telos epitidevmatos) for freelancers and independent business owners (cost: 120 million euros)
– Implementation of the permanent return of the special consumption tax EFK for farmers (cost: 100 million euros)
– Increase of the housing subsidy for college students (cost: 15 million euros)
– Increase of pensions (cost: 400 million euros), and
– Suspension of VAT collection in construction.
The Greek economy does not exist in isolation and is influenced by international developments, but it weathered two crises to reach higher development rates than the EU average, Hatzidakis said. “We are combining our obligations with the new fiscal rules. What we want is to have extra savings for difficult times to support the vulnerable,” he added.
Among other things, he also said “we do not want to boost consumption and imports,” but Greece will aim to support productivity and exports, assisted by NSRF and Recovery Fund support. At the same time, tax and licensing policies will provide incentives for investments and exports, he noted, while a law will be drafted on company mergers (with tax incentives and funding) and innovation.
