Greek Finance Ministry optimistic a deal with ‘Quartet’ could close by March 25

Increased taxes for lower income earners?

The Greek Finance Ministry delegation seemed optimistic that a deal could be reached before March 25 with the country’s creditors, the ‘Quartet’, following their Sunday talks. Greece is trying to reach an agreement in negotiations with its creditors to pass an assessment as part of conditions laid down for in a bailout plan agreed upon in the summer of 2015. According to sources, talks on issues of income taxation resulted in a general convergence of opinions on hiking taxes on lower income bracket earners, while farmers will remain relatively unaffected. In addition to this, a rise in property income taxes should be expected. Lowering the tax free threshold to 7 or 8 thousand per annum, a proposal tabled by the Quartet seems inevitable at this stage. A Greek government official said the Greek side was trying to salvage a few hundred Euros to raise the threshold to around the 9 thousand Euro mark. Greek Finance Minister Euclid Tsakalotos presented a plan to alleviate employees and pensioners of the burden of the 150mln Euros more demanded by the creditors. Freelance professionals and farmers seem to be the ‘lucky’, as the lenders agreed to allow them to be taxed within the employee and pensioners bracket. Divergence between the two sides remains on matters of public finances. Following the meeting, sources say the representatives of Greece’s lenders were on the phone with Washington, Paris and Brussels to inform on the progress of talks.