World Economy

Greek PM Announces Cuts to Crisis-Era Taxes

Greek PM Announces Cuts to Crisis-Era TaxesGreek PM Announces Cuts to Crisis-Era Taxes

In his annual state of the economy speech, Greek Prime Minister Antonis Samaras has promised to cut unpopular taxes introduced at the height of the country's debt crisis.

Samaras made the annual speech marking the end of the traditional summer break on Saturday at the Thessaloniki International Fair.

In his address, he promised a 30 percent reduction in taxation on heating oil. The move reverses a measure passed in 2012 at the height of the country's debt crisis which failed to bring added revenue. He also said a "solidarity tax" and a deeply unpopular property tax would also be cut without providing details.

"This is the year that Greece has started to stand on its feet. It is still wounded, yes, but standing," Samaras said.

The government on Saturday also confirmed that the country's economy is expected to expand in the third quarter for the first time in eight years.

"The country has stabilized and is entering the path of growth," Samaras said.

At talks in Paris this week, Greek officials brought up the issue of tax relief and rolling back austerity with its lenders from the EU and International Monetary Fund (IMF) as part of the country's latest bailout review.

However, there has been no confirmation yet on whether they have agreed to the move. Samaras said details of the tax cuts would be presented in the country's draft budget in October.