Finance Minister considering new taxes and relief measures

The Minister of Finance Charilaos Stavrakis said here today that the government is examining the possibility of returning to the citizens revenue which might result from new indirect taxation, in line with European Union decisions.
Speaking at a press conference on corporate government, the Minister referred to the new taxes, which as anticipated the EU will impose during the second semester of 2008.
He made particular reference to the possible imposition of VAT rate of 15% on land sales and to an increase in consumer tax on diesel by 20%.
“These increases will give new revenue to the state and as we have said, it is very likely that we shall return this revenue to the taxpayers as compensation,” he added.
However, he clarified that the Cabinet has not yet taken a decision on the matter.
The Ministry is thinking of returning to the tax payer the VAT paid on land sales through the refund of fees paid for the transfer of land. It is also considering paying back excess amounts to support the construction industry and government housing policy.
In relation to the consumer tax on diesel, Stavrakis said that a possible thought is to reduce the duty paid for road tax.
Stavrakis said that the government has undertaken certain commitments towards the EU regarding its fiscal policy and reminded that the rate of development is slowing down due to external factors.
This, he noted, is more evident in the construction sector which affects public finance.
“Our aim and the challenge lying ahead of us is to properly manage recession, lessening to the biggest extent possible the effect on the lowest income groups, by applying a targeted policy,” Stavrakis said.