Lower house approves government’s tax reform

13-07-2012

The lower house on Friday approved the government’s tax reform. The bill, which was passed in its third reading, envisages a one percent hike in Value Added Tax to 15 and 21 percent respectively, fewer tax reliefs for entrepreneurs and the introduction of a 7-percent “solidarity tax” for people with monthly salaries over 100,000 crowns. The tax reform is part of an austerity package aimed at bringing the deficit in public finances under 3 percent of GDP. The proposed tax hikes, which will now be debated in the Senate came under fire from some deputies within the prime ministers Civic Democratic Party who say they will undercut growth.