The government has begun relieving the middle class from over-taxation, said Finance Minister Christos Staikouras in an interview to Saturday’s edition of ‘Efimerida Ton Syntakton’ newspaper, and is implementing “a policy fully consistent with our promises, yet without jeopardizing our budgetary discipline,” the FinMin said.
He added that “the tax-free income threshold will be maintained, with an additional tax free 1,000 euros per child up to 4 children, expanding the current status quo,” and that the 9 pct reduction in incomes up to 10,000 euros will come into effect as of January 1 2020.
“Although there is no scientifically accepted definition of middle class and middle class incomes, we can say that anyone who is not part of the extremely poor 10 pct or not part of the richest 20 pct, is middle class,” Staikouras asserted.
He also said that improving the economic climate allows for the necessary budgetary maneuverability and “further tax reductions in 2020.”
The finance minister estimates the cost of the Prime Minister’s announcements at TIF “along with the reduction of insurance contributions, to around 1.2 billion euros, but the final fiscal result may be less, as most of the interventions carry a strong growth process.”
Staikouras also stressed how his ministry is working systematically to repay the expensive 3 billion euros portion of its loan to IMF, a move which he said “guarantees immediate profits to the Greek State of around 75 million euros, improves the indicators of public debt and also achieves relative hedging of market risks due to the specific characteristics of IMF loans.”