The Greek government is scrambling to introduce the bill on the use of ‘plastic money’ within the next thirty days, in an effort to raise state revenues. Among other matters, the bill will determine the volume of receipts workers, pensioners and farmers will have to collect annually in order to be eligible for tax reductions and fall within the tax deduction threshold of 8,639 Euros to 9,545.

As Greek Finance Minister Euclid Tsakalotos disclosed on public broadcaster ERT, two more bills are in the pipelines addressing the issues of incentives for voluntary disclosure of hidden income and measures against tobacco snuggling.

More specifically, with regards to the bill on plastic money, an aggregate volume of receipts on the part of taxpayers will be required to reach the deductible threshold and will be proportionate to the annual earnings of the worker or pensioner. Under the new system the tax office will recognise expenses for goods and services if payments are made via credit or debit cards and through online e-banking. The tax office will also accept cash receipts for the current fiscal year, as half the term has passed. Taxpayers that fall within the tax deduction bracket of 8,639 Euros to 9,545 will be compelled to cover 15% of their receipts with cash receipts, while people up to 20,000 Euros of annual earnings will have to present 30% of cash receipts. Those over the 20,000 Euros annual income bracket will have to cover 40% of cash receipts.

On the matter of undeclared or hidden income, the bill will provide incentives for disclosure, but not full amnesty. Taxpayers with undeclared income included in the scheme will be allowed to make supplementary statements of the income they want to legalise from August onwards and for a 3-month period. The bill for contraband tobacco provides for a detailed scrutiny along the whole tobacco procurement chain in an effort to expose any illegal practices.