Before the first month of the year is even over, planning has already begun in the government on how to share the financial benefits of collecting an extra €2 billion in 2024 from the tax evasion curb.

The focus is on the middle class, with changes to the tax scale that will give a “breather” to incomes of up to or over €40,000 a year. Low and middle-income households are expected to benefit from the changes, while new targeted support measures are also being sought for those most in need.

The Minister of National Economy and Finance has already given the timeframe for the announcements, in the next 7 months remaining until the Thessaloniki International Fair where they will be announced by the Prime Minister.

Speaking on Tuesday night at the Economist conference, Kostis Hatzidakis combined the reduction of tax evasion with tax reduction measures, stressing that “the looming overshoot of the 2024 budget targets creates conditions for new positive initiatives. Initiatives for further tax cuts for all consistent taxpayers that will be announced by the Prime Minister in the autumn at the TIF.”

“Behind the words” the minister hinted that the tax cuts would apply to direct taxation rather than indirect taxes, on the grounds that the more “law-abiding” the taxpayer is and is taxed more heavily than others, the greater the benefit he or she will get from the new measures.

On the flip side, those who evade taxes will get no benefit from the reductions in direct income taxes, but neither will they benefit from reductions in VAT and indirect taxes that are “encapsulated” by the sneaky ones.

Referring to social policy, the minister stressed that the goal of all this effort is to increase disposable income and the well-being of citizens, but building on the foundations of a serious economic policy.

“Greece continues to be one of the few sources of ‘good news’ in a turbulent international environment,” the minister said. He stressed that “in 2025, we foresee:

• • – 7 salary increases
  • – Increase in health spending (+74% compared to 2019)

– Increase in health spending (+74% compared to 2019)

– Creation of social infrastructure across the country, leveraging the MFF and the Recovery Fund.

– Social infrastructure across the country.

On the other hand, he also foreshadowed a “rationalization” of social benefits, “so that they are directed to those who need them,” he said.

Hatzidakis cited the positive performance achieved in the economy in recent years, noting, for example:

• – the 64% increase in investment over the last five years, the highest in the EU.
• – the more than doubling of exports compared to pre-crisis levels, with figures for 2024 indicating that they will exceed 100 billion.
• -the improvement in the OECD’s PMR (Product Market Regulation Index) regarding the level of competition.
• -the reduction of a total of more than 70 taxes.

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