Factbox: Greece pledges new EU-IMF austerity measures

ATHENS Thu Jun 23, 2011 1:38pm EDT

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ATHENS (Reuters) - Greek Finance Minister Evangelos Venizelos on Thursday unveiled measures to help Greece plug a shortfall in the austerity plan agreed with inspectors from the European Union and International Monetary Fund.

Venizelos said that when he took office last week, the shortfall stood at 5.5 billion euros. Subsequent adjustments brought the figure down to 3.8 billion euros and the measures announced on Thursday were aimed at closing that gap.

Following are the measures announced:

- One-off solidarity levy on personal income ranging between 1 and 5 percent, according to income: Those earning 12,000 to 20,000 euros a year will be taxed at 1 percent. Rate then climbs to 2 percent for incomes of 20,000-50,000 euros, to 3 percent for 50,000-100,000 euros and to 4 percent for those earning 100,000 euros or more. Lawmakers and public office holders to pay a 5 percent rate.

- Tax-free threshold on income lowered to 8,000 euros annually from current level of 12,000 euros, with the lowest rate set at 10 percent and exemptions for young people up to 30 years, pensioners over 65 years and the disabled.

- Annual levy of 300 euros on the self-employed.

- Small tax hike for heating and diesel fuel for companies.

- Public spending cuts of 400 million euros in 2011.

(Reporting by Angeliki Koutantou)

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Comments (1)
Trikeriotis wrote:
It is trully amazing what is going on with the Greek SUPER saga. The new grek finace minister who is years in the greek politics, changing positions like a dirty underware, now he is the new finance minister with NO previous education and understanding of economics and he suggests a 1 to 5% one time increase on incomes reported, which are always fake, which amounts to 100 euro @ the 10.000 euro reported income and at 50.000 euro @5% of 2.500 euro. And……………????????

Even if there are 500.000 such individuals to pay the 2.500 it is only euros which is a drop in the bucket and i am 100% sure that all of these 500.000 high income earners suddenly in their 2012 income tax report, they will report 25% less that they did the year before.

Mr. Venizelos whos family has been in politics since the begining of the new greece and as a family have sucked millions of euros from the country should be the first on line to emply his pockets and accounts from moneis that he and his family along with ALL of the politicians and their well healed Greek industrials who are in bed together via special deals, and pay back unpaid taxes and a endless list of breaks.

I feel sory for the Eurpoeans who simply DONT understand the mentality of the Greeks.

Jun 23, 2011 10:25pm EDT  --  Report as abuse
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