3% VAT reduction through credit card use

The government’s plan to assuage EU partners

A motive of a 3% return on the value of any transaction will be given to all those using Credit or Debit cards instead of cash, according to the latest plan by the Finance Ministry to curb the flow of tax evasion.

 

This system was revealed by Proto Thema newspaper last Sunday as one presented by Varoufakis’ team to EU partners. It is expected to be implemented as a pilot program and will include added incentives which may motivate the use of cards in our country.

 

Since the government cannot implement horizontal VAT reductions, the government seeks to present an indirect VAT reduction of 3% which will be attributed to the taxed individual as a “payment” for their cooperation. This amount may be deposited in the bank at the end of the year or added with taxes and debts to the public sector which are credited to the card holder.

 

The government seeks to convince lenders, this way, that VAT doesn’t need to rise, as long as the VAT is actually received.