Considerations for a retroactive tax of income declared for 2015

The government is debating whether to introduce new rates for the solidarity tax, by raising the ceiling from 8% to 10%, as well as setting the maximum income tax rate to 60%.

According to a report in Ta Nea the government is also considering a retroactive tax on income for 2015, in order to cover the 550 million euro budget deficit. A Finance Ministry officer commented that alternative measures will have to be introduced in order to cover the 2016 budget deficit, however the government has limited options.

Although Finance Minister Euclid Tsakalotos recently rejected such a prospect, the creditors are pressuring towards such solutions. The creditors are also pressing the government to abolish tax breaks for employees and pensioners, which the Greek side is resisting.