PM Mitsotakis on new measures to support income, youth kicking in on Jan. 1

A batch of measures reducing taxes and supporting income went into effect on January 1, 2022, Greek Prime Minister Kyriakos Mitostoakis said in his official Twitter account on Monday.

In a series of four slides, the PM outlined measures to:

– Support income, including a 2% rise in base salaries, a drop in the prepaid tax from 100% to 80% for businesses and to 55% for individual taxpayers, a drop in VAT for transporation, coffee, non-alcoholic beverages, film theater tickets, tourism packages and gyms, and a drop in the phone tax to 10% from 12%-20% for those over 29 years of age

– Support work and investments, including income tax cuts for businesses from 24% to 22% while continuing other measures in effect in 2021, such as the drop in three percentage points of insurance contributions by employees of the private sector

– Transform the economy, including providing incentives for mergers of small, medium-sized and very smal businesses, using 30% of specific online expenses to reduce individuals’ taxable income, and

– Supporting Youth, including the new supplementary pension plan (based on choosing among three investment plans), a bonus of 1,200 euros for all those aged 18 to 29 who get their first job within 2022 (i.e. who pay into social security funds for the first time) for the first 6 months of work, the end of a telecoms fee for young people aged up to 29 years, and a reimbursement of fuel expenses for young farmers and farmers of collaboratives during 2022.

In his tweet, Mitsotakis said “the target is to create new and better jobs, to raise public revenue so we may support public education and health, and to provide a better life to our youth.”