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> Elections september 2015

Shhhh! It doesn’t really matter who Greek voters pick on Sept. 20

Whether its SYRIZA, ND, PASOK, Potami, the scenarios after the election remain the same...

Newsroom September 9 09:13

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Greeks are to decide on the country’s next political leader on September 20, however the real decisions for the country will be made at the Eurogroup meeting in Luxembourg on September 11-12. The EU finance ministers will decide on measures to be implemented in Greece immediately after the elections regardless of the “winner”.

Provisions for Greece had already been voted on in July and August and will go into effect irrespective of election results. Whether it is SYRIZA, ND, PASOK, Potami or any other mainstream party, here’s the plan:

– The single property tax (ENFIA) will be paid for 2015 (yes, the same tax that SYRIZA had promised to abolish when it rode on the crest of a popular mandate!) The bill will be sent to households at the end of September or start of October in an effort to yield 2.65 bln euros from real estate owners pockets by February 2016.

– Gathering income taxes for E1 in one or three instalments will immediately go underway.

– Downpayments to income tax by 55% and not 27.5% will influence 600,000 farmers.

– 30% tax hike for luxuries due retroactively for 2014 causing thousands of car owners whose cars have an engine capacity over 2,500 cc to cringe. The tax will also be applied to swimming pools, and recreational crafts of over 5 meters in length.

– Extra contributions to be paid by those who declared 50,000 euros or more in 2014.

– Tens of thousands of SA and Limited Liability companies will pay their taxes in advance for next year.

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– A tripling of special excise duty on farm diesel will be implemented on October 1. The increase means a hike from 66 to 200 euros per kiloliter! The tax difference between rural and normal diesel will be reset. This means no returns on excise tax paid to farmers on account of their productivity.

– Anonymous companies, joint stock companies and cooperatives and associations will pay extra income tax in advance payments of 100% instead of 80% retroactively for 2014. This rule EXCLUDES banks and insurance companies.

The new government will also have a number of other controversial issues to deal with, such as the 23% VAT hike for private education institutions, amendments to the 2015 budgets to deal with the 4bln euro “gap”, create a fiscal program for 2016-2019 to appease Greece’s lenders etc.

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