FT: The Greek government’s new list of reforms

The Greek government’s list of reforms, a 26-page document presented to the country’s creditors, foresees revenues from 4.7 billion to 6.1 billion euros for the 2015 budget, the Financial Times reported on Wednesday.

At the same time, new expenditures are foreseen of 1.1 billion euros (mostly because of a bonus to supplement low-income pensions and other related expenses).

The result of both, the government said, will increase primary surplus (from 1.2 percent of GDP without the measures) to 3.1-3.9 percent of GDP. This year’s GDP is foreseen at 1.4 percent, and next year’s (2016) at 2.9 percent, while unemployment was expected to drop to 23.4 percent this year and 21.1 percent next year.

According to list of reforms (“Greek Reforms in the Context of the 20/02/2015 Eurogroup Agreement”, dated March 2015), the list of revenues includes the following:

– Intensification of audits on lists of bank transfers and offshore entities (expected revenues, in euros: 725 to 875 million)
– Combating illegal trade on oil, tobacco and alcohol (250 to 400 million)
– Enforcement of transfer pricing legislation (40 to 60 million)
– Introduction of a VAT lottery scheme to reward costumers for demanding a receipt (270 to 600 million)
– Fight against VAT fraud (350 to 420 million)
– Improvement of the state revenue collection mechanism (225 to 235 million)
– Installment scheme for tax and social security arrears (300 to 400 million)
– Initiatives to increase revenues (435 to 450 million)
– Implementation of TV advertisement tax legislation (50 to 70 million)
– Luxury tax on assets such as cars, swimming pools, yachts (around 20 million)
– Streamline the income tax code and eliminate exemptions (300 to 400 million)
– Fight tax evasion by self-employed business/professionals (20 to 30 million)
– Incentives for the payment of taxes assessed upon an audit, by removing obstacles to administrative settlements (100 to 200 million)
– Administrative dispute settlement on property taxation to prevent loss of cases due to statutes of limitation (50 to 70 million)
– Cultural heritage, from archaeological sites and museums (increase of 5 to 10 million)
– Regulation of e-gaming/gambling (125 to 175 million) and
– Public tender/auctions for TV licenses (350 to 380 million)