The Hellenic Federation of Enterprises (SEV) raised a series of issues and concerns over the government’s economic policy and particularly the tax reforms introduced.
In a monthly report, the industrialists criticized some of the government’s plans to promote growth, focusing on reducing taxation only for those on low incomes and freelance professionals, excluding wage earners on higher salaries such as business executives.
The report acknowledges that the changing economic policy mix is a step in the direction of reducing excessive taxes enforced in recent years, while serving to attract investment to Greece.
Nevertheless, it argues that tax cuts and a clampdown on red tape will not suffice to boost the economy, as the draft 2020 budget falls short of promoting crucial reforms that would widen the tax base, among other things.
On the fiscal side, SEV says more measures are necessary to achieve strong growth – especially in the event of projections falling short of targets – in addition to the positive policies being promoted by the government, such as the plans to boost electronic payments.
The Finance Ministry has revealed plans to table fresh legislation in parliament to amend tax laws at the end of October.
An indication of how the economy is performing will be provided on Tuesday when official figures on the execution of the state budget in September will be released. Government officials hope any available fiscal space this year could be used to further reduce the tax burden on business and individuals on low incomes.
Meanwhile, economic sentiment in Greece improved last month, reaching 107.3 points in September from 105.3 points in July, the Foundation for Economic and Industrial Research (IOBE) said.
Expectations have improved across all main domains of the economy, the survey found, while consumer confidence has also significantly improved./ibna