New draft tax bill: The ‘annihilation’ of the middle class!

16 November 2018
397 Views

The new draft bill on taxation that came for deliberation Tuesday provides a 37 percent income tax and 7.5 percent contribution from citizens earning over 40,000 Euro per annum. Employees making between 750-800 Euros per month will be called to share a large burden, as the tax free threshold went to 9,100 Euros per annum from the previous 9,545.

The new income tax scale includes:

-22% for the first 20,000 Euro income earnings

-29% for income earners in the 20,001 Euro bracket

-37% for incomes from 30,001 to 40,000 Euros

-45% for incomes over 40,000 Euros

Freelance professionals will be taxed according to the same tax brackets without the indirect taxation of the 9,100 Euros that comes about by the 2,000 Euro deduction.

The new solidarity contribution will also change:

-0% for incomes up to 12,000 Euros

-2.2% for incomes from 12,001-20,000 Euros

-5% for incomes from 20,001-30,000 Euros

-6.5% for incomes from 30,001-40,000 Euros

-7.5% for incomes from 40,001-65,000 Euros

-9% for incomes from 65,001-220,000 Euros

-10% for incomes over 220,001 Euros

According to the draft bill income earners in the 9,100-27,000 income bracket will be called on to pay a solidarity contribution between 8 and 176 Euros, while pensioners and employees between 28,000 and 43,000 Euros will see a reduction in taxes ranging from 76 Euros to 399 Euros.

Pensioners and employees with an income over 43,000 Euros will face great tax burdens, while the majority of freelance professionals earning up to 32,000 Euros will see deductions of up to 764 Euros.

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