The Greek parliament began this morning to debate in committees the first package of measures that eurozone partners have imposed the Executive as a precondition for starting negotiations on the third rescue program.
The legislative package is expected to be transferred to the full from early in the afternoon, where it is expected that the debate last until late at night.
No one doubts that the project will go ahead with a broad majority, although it is expected that the leftist-nationalist coalition government should seek support from the opposition, given the internal blister that has raised the agreement.
The bill is called “urgent reforms for negotiation in view according to the European Stability Mechanism (ESM)” and signed by the finance minister, Euclid Tsakalotos, that of Interior, Nikos Vutsis, the Labor Panos Skurletis, Justice, Nikos Paraskevopoulos, and Deputy Minister of Administrative Reform, Yorgos Katrúgalos.
is divided into two items of which the first is about ratification of the outcome document of the European Council, in which the conditions and the framework agreement
are set to begin negotiations. In the second a string of reforms that concern included the value added tax (VAT), new tax measures, strengthening the criminal treatment of tax evasion, reform the pension and social security, the guarantee of the independence of Helena Statistical Authority (ELSTAT) creating a tax authority under the Treaty for Stability.
Specifically, it refers to the introduction of three types of VAT, with a drop of super reduced from 6.5% to 6% for medicines, books and theater; 13% for basic food, hotels, energy and water; and 23% for the rest, including restoration, to the currently applied by 13%.
It provides for legislation on the phase out, from October to end of 2016, 30% discount on the Aegean islands richer and more tourists, but the most remote islands excepted.
However, details, will help to residents with lower incomes.
The package contains a solidarity tax reform, with retroactive effect from the beginning of this year, with new rates go from 0.7% to 8% depending on the declared income.
Add the luxury tax from 10% to 13%, also with retroactive effect to the declaration of 2014, applicable to cars of more than 2,500 cubic centimeters, pools, airplanes and boats with a minimum length of 5 meters (whereas until now the minimum size was 10 meters).
It also raises the corporate tax from 26% to 29% with an advance payment of 100 % of this tax.
With regard to strengthening the fight against corruption, the document includes criminal prosecution for tax evasion from 10,000 euros.
As pensions, the bill provides an increase in the contribution by pensioners to the health system from 4% to 6%, the phasing out of aid to the lowest pensions (EKAS) between now and December 31, 2019 and freeze pensions in nominal terms until 2021.
It provides the fusion of supplementary pensions, which will then be financed exclusively by contributions from workers (until now were financed by employers and in some cases state aid).
In addition, members require guarantee the independence of the statistics office ELSTAT and the creation of an independent Fiscal Council , responsible for ensuring compliance with the deficit targets and monitor the implementation of tax legislation.
EFE
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