IOBE study: Use of ‘plastic’ rather than cash ups VAT collection in Greece by 50% in 2017

5 July 2018
287 Views

The skyrocketing use of debit and credit cards in Greece – especially in the wake of imposed capital controls in June 2015 – has dramatically improved tax collection, increasing annual VAT remittances, for instance, by 50 percent in 2017.

According to a study by the Athens-based Foundation for Economic & Industrial Research (IOBE), if the use of “plastic” doubled in the country – reaching average European levels, in the process – VAT remittances would correspondingly rise by 3.3 billion euros a year.

IOBE’s study also notes that more targeted measures are needed in order to further boost the use of debit cards for payments – instead of cash – essentially the “fuel” for the country’s “grey” or “off-the-books” economy.

While the use of debit and other banks cards has mushroomed since 2015, Greece still remains in the bottom quarter of EU countries (seventh from last) in terms of the value of electronic transactions as a percentage of private sector consumption, namely, 20.1 percent in Greece for 2017, as opposed to the EU average of 34.6 percent in 2016.

You may be interested

Iconic baker of Kos, who fed refugees during 2015 crisis, dies
GREECE
shares12 views
GREECE
shares12 views

Iconic baker of Kos, who fed refugees during 2015 crisis, dies

Panos - Feb 18, 2019

The iconic baker of Kos, an island in the eastern Aegean, Dionysis Arvanitakis, who became known throughout Europe for his…

The UK to refer to FYROM as North Macedonia from now
GREECE
shares11 views
GREECE
shares11 views

The UK to refer to FYROM as North Macedonia from now

Panos - Feb 18, 2019

The UK Secretary of State for Foreign and Commonwealth Affairs, Jeremy Hunt sent his congratulations to the governments of Greece…

ND leads SYRIZA by over 13% in Athens’ 1st electoral district, latest poll published in Proto Thema shows
GREECE
shares14 views
GREECE
shares14 views

ND leads SYRIZA by over 13% in Athens’ 1st electoral district, latest poll published in Proto Thema shows

Panos - Feb 18, 2019

Main Greek opposition party New Democracy (ND) has opened up a substantial lead against ruling leftist SYRIZA of 13.1 points…

Leave a Comment

Your email address will not be published.