The possibility of additional tax cuts in 2022 by the Ministry of Finance is open. Apart from the “locked” ones concerning the abolition of the solidarity contribution. As well as a three percentage point reduction in social security contributions for private sector employees. But also the reduction of the tax rate for businesses to 22% from 24% is left by the government.
Finance Minister Christos Staikouras spoke of new reliefs next year. Provided, of course, that the necessary budgetary space is found. But the green light will also be given by the institutions expressing optimism for further tax and contribution cuts.
What is under consideration?
According to reports, scenarios for extending the suspension of the solidarity contribution to public sector workers and pensioners are on the table . As well as a reduction or complete abolition of the supplementary property tax. Two other reliefs are also under consideration , but with little chance of implementation. One is the reduction of the business tax for freelancers and businesses. And the other is an average 8% reduction in the ENFIA.
The extension of the measure of the suspension of the solidarity contribution to all public and private sector employees is one of the main priorities of the Ministry of Finance. But the implementation of the measure requires a budgetary space of 800 million euro. euro. However, if implemented all civil servants and pensioners with an annual income of more than 12,000 euros will have increases in their net pay starting from 8 euros and will exceed 141 euros depending on the amount of salary. The higher the earnings, the greater the relief. For example, for a salary of €1,000 the benefit is €15.1 and for a salary of €3,000 the benefit is €141.5.
In real estate taxation, the plan provides for a reduction or complete abolition of the supplementary ENFIA. It is imposed with staggered rates ranging from 0.15% to 1.15% on every natural person with total real estate with an objective value of more than 250,000 euros.
What about ENFIA?
For many taxpayers whose property currently has an objective value just below the tax-free threshold of 250,000 euros of the supplementary ENFIA, the increase in objective prices from 1-1-2022 will result in the objective value of their property exceeding the threshold of 250,000 euros. They will thus have to pay a supplementary tax for the first time. Regarding the basic ENFIA, as Business Daily reports, the government has promised to make interventions in the scales and rates in order to cancel the tax burdens on small and medium-value properties brought by the increase in objective prices. The total fiscal cost of the changes to the ENFIA regime is estimated to exceed 250 million. euro.
After the completion of the ENFIA reform and depending on the fiscal margins and the situation in the real economy, it will be considered whether there should be an additional legislative intervention providing for a further reduction of the tax by 8% on average.
