Greek Farmers Respond with Tractor Barriers

30 October 2015
165 Views

The meeting between Greek farmers and the Deputy Finance Minister Tryphon Alexiadis turned out to be a fruitless one. “We can’t change what has already been written,” said Alexiadis to farmer association representatives, who protested against tax hikes by creating a barricade of tractors.

During the meeting which lasted about half an hour, both groups focused on all the issues regarding the taxation of farmers, but unfortunately there was no clear resolution for the two sides to agree upon. The deputy finance minister clarified to the farmers’ representatives that the measures provided in the agreement with the country’s creditors cannot be changed.

The first information circular about the special tax increase on agricultural fuel from 66 to 200 euros per kiloliter has already been issued. The tax exemption on agricultural subsidies and compensations have also been made public and the only issue that remains pending is the increase in tax rates from 13% to 20% and later to 26%.

Alexiadis explained to farmers that the 20% rate will cover the 2016 period and it will be cleared in 2017, leaving only a small window to identify more deductible expenses, so that the taxable income and the tax may be slightly limited. However, this requires creditors’ consent.

Furthermore, the conditions under which people will be able to declare agriculture as their official profession still remains unclear. In regards to the taxation of agricultural land, the government will consider their exemption, however, no decisions have been made yet, given that the discussions on the new tax that will replace the special property tax, will start in the beginning of 2016.

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