Dora Bakoyiannis: There must be an immediate and drastic reduction of taxation

Dora Bakoyiannis: There must be an immediate and drastic reduction of taxation


By Spiros Sideris – Athens

For the immediate and drastic reduction of taxation for individuals and small businesses called the New Democracy MP Dora Bakoyannis, in reference to the discussion of the draft budget to the Finance Committee of the House.

“Do not underestimate the fact that people cannot pay. Two and a half million taxpayers have outstanding debts to the IRS”, noted Ms. Bakoyannis, who acknowledged that “the government is proceeding correctly with settings 100 repayment installments. It is a correct and necessary measure at the point we are now”.

However, as she pointed out, “instead of making debt arrangements, which means that a taxpayer for 8.5 years (by 2022) will pay the tax burdens of this period, while at the same time be burdened with new charges, let’s do something more drastic. Lets reduce immediate and drastically the tax burden. This is the positive, strong message that the Greek economy needs”.

Mrs. Bakoyannis said that the heavy taxation acts obstructively to the investments needed by the country, noting that “if we want to bring new investments in the country, if we want to stop Greece being at the bottom of the world in new investments, we must put an end to heavy taxation. Investments in Greece last year were 12% of the GDP, when in the Eurozone were 18%. The caution by the market, SMEs and the EU through the Task Force, now shows the stalemate of over-taxation”.

Furthermore, Mrs. Bagkogiannis recognized, as an important parameter for improving the Greek economy, the enhancement of the liquidity of private economy “so that businesses can utilize the improved competitiveness”.

“Unfortunately, the adjustment in this front is slow, very slow. First the banking system continues to be absent from the market. Although noted, even in the draft, that the cost of money for the Greek banking system decreased, it has not yet reached the market”, she commented.

As she notes: “the rate of funding of Greek economy by banks continues to be negative, at -13.3%, between December 2013 and July 2014, This creates a tremendous lack of liquidity in the Greek economy, which in conjunction with over-taxation kills business, the middle class, merchants, free trade professionals”.

Finally, Mrs. Bakoyannis attacked SYRIZA stating that “cries on television screens, betray, voluntary blindness and lack of inspiration”.

Addressing the main opposition she said: “with policy from the past that smell mothballs, declares war on society, the productive and creative Greeks, in young people, the unemployed. Because the only thing that can be achieved with your outdated policy is to chase away the few investors attracted to Greece, despite the great difficulties posed by over-taxation and the continued high government intervention in the economy”.