The Greek cabinet approved the draft tax bill, which is to be tabled in Parliament for debate today, after making modifications to the provisions of the bill.
Among the modification was an increase in the tax relief for redundancy payments and to the first home owner scheme.
Prime Minister George Papandreou stressed that the tax bill bears the hallmarks of his government’s progressive perspective, stating that it represents a huge reform and a revolutionary change.
“It clearly bears the hallmarks of our progressive perspective, as well as the provisions for social equity required by the people of Greece,” said the Greek Prime Minister.
George Papandreou underlined that the bill demonstrated the government’s pledge to work hard and noted that the philosophy of the tax system is about to change.
The reforms in question will not solve all the problems of the tax system at once, according to the Greek Prime Minister, stating that its likely to require further adjustments along the way.
He then went on to argue that only major structural changes could cement the country and that the fundamenetal changes in the system of taxation in Greece would render further radical changes in the taxation system unnecessary.
Addressing a Herald Tribune congress on Tuesday morning, Finance Minister Giorgos Papakonstantinou claimed that the government measures aim to stamp out tax evasion and described the tax bill as a radical change in economy as it envisages establishing social justice by redistributing income in favour of the low-income earners.
Main opposition New Democracy (ND) party leader Antonis Samaras said that his party will not allow Greece to go bankrupt but cautioned the government that “we shall not allow you to dissolve society in order to ‘restructure’ the economy.”
“Low wage-earners and low pensioners are not to blame for the extravagance of the state, or for the heavy debt of the public sector or for tax evasion,” Samaras stressed.
Nevertheless, the ND leader expressed his readiness to contribute to the prevention of the country’s default, noting that he will not attempt to dismantle, a few days before the EU summit, the government’s economic policy, but “neither will I let you place the blame elsewhere for responsibilities that are exclusively yours.”
Speaking in general on the repercussions of the government’s measures, Samaras reiterated that what constitutes the measuring stick for the economy is the purchasing power of the low wage-earners and pensioners.
The LAOS (Popular Orthodox Rally) leader Giorgos Karatzaferis lashed out at the government’s intention to tax the Church’s assets and make taxi drivers to install cashiers.
