Gov. sources: "The middle class rectification plan to be implemented immediately"

Government sources on Monday said that a plan for the "recovery of the middle-class is being implemented immediately," and stressed that the implementation of both tax and insurance contributions deduction commitments "are being put into a trajectory of implementation," as per Prime Minister Kyriakos Mitsotakis' commitments during the (ongoing) 84th TIF at Thessaloniki.

The same sources noted that "as the prime minister announced at TIF, the government is implementing the tax and social insurance cuts for households, farmers, for the real estate market and for small and medium-sized enterprises (SMEs).

They referred in detail to the positive interventions announced by the Greek Premier for 2020, including:

1. Keeping the current tax-free income rates as they stand and reducing the tax rate for incomes up to 10,000 euros to 9 pct from the current 22 pct, with an additional tax free 1,000 euros per child.

2. Setting tax on new agricultural vehicles to 10 pct.

3. Reducing business tax from 28 pct to 24 pct and dividends from 10 pct to 5 pct.

4. Three years' suspension of VAT on new constructions/buildings and a 40 pct reduction on renovation costs or energy upgrades of buildings/homes.

5. Allowance of 2,000 euros for each new child, except those in a very high income category.

6. Reduced VAT rate of 13 pct for infants' essentials, including child seats and helmets.

7. Keeping the special retirement allowance as is, which will be paid out at the end of 2020.

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