World Economy

Over-Taxation in Greece

Over-Taxation in GreeceOver-Taxation in Greece

European Commission statistics point to the disproportionate increase in taxation in Greece, at a time when the economy was shrinking, while the country’s industrialists and political opposition say over-taxation has led to more tax evasion and the failure of the tax system, Ekathimerini reported. Data included in the fall forecasts of the commission show that direct taxation on income and wealth has risen to 10.2% of the country’s gross domestic product this year, from 9.4% of GDP in 2009. Given the dramatic contraction of the country’s GDP over the last eight years, the load on taxpayers is excessively heavy. According to the report, the taxes Greeks are asked to pay this year on income and wealth add up to €18 billion ($21 billion), against 20.3 billion in 2009, while taxes on output and imports have risen to €31.7 billion from 27.8 billion eight years ago. Brussels expects the primary surplus to beat its target of 3.5% of GDP again next year, rising to 3.9%, and then to 3.7% in 2019, as a result of the over-taxation.


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