BoG’s Stournaras: Fairer distribution of tax burden – Incentives for card payments are coming

“The fight against tax evasion and the fairer distribution of tax burdens should be given priority”, stressed the Governor of the Bank of Greece, Yannis Stournaras, in his speech on the topic: “Fiscal developments – Combating Tax Evasion” at the 19th Tax Forum, at the hotel Atheneum Intercontinental.

As noted by Mr. Stournaras, “the resulting increase in tax revenues will create additional fiscal space, facilitating a broader reform of the tax system while simultaneously promoting tax justice.”

He also reminded that according to a recent survey, the size of the shadow economy in Greece is estimated at 20.9% of GDP, higher than the EU average (17.8%) and despite the fact that the country recorded the third largest decrease between of European countries in the last 20 years.

The Governor of the Bank of Greece also presented a series of policy proposals aimed at addressing the problem in order to ensure the overperformance of tax revenues

Six proposals

1) Further expansion of electronic transactions by expanding the use of mobile point of sale (POS) machines in more financial activities.

2) Providing incentives for payments through debit cards, but also through banks

3) Providing incentives in the form of tax exemptions for the disclosure of transactions in highly tax evasive industries,

4) Continuation of the upgrade of Independent Government Revenue Authority-AADE’s electronic tools that expands the possibilities of managing and exploiting the information collected through electronic transactions.

5) The stability and further simplification of the tax system will facilitate the operation of the tax collection mechanism.

6) Finally, the intensification of efforts to create tax awareness and the cultivation of tax literacy.