Greek Finance Ministry examines the possibility of increasing taxation in deposits. Faced with the sharp shortfall in tax revenue, the leadership of the ministry is seriously considering the possibility of taxing the last household asset, which had remained intact during the last two years of unprecedented austerity. However, there is a risk of decreasing deposits.
Policy makers consider two scenarios. The increase of taxation in income from capital (real estate, deposits, securities, etc) is one of the key components of the collection policy for the coming years.
The first scenario provides the taxation of interest on deposits based on the scale of income tax. The tax rate could reach 45% of those who have annual income above €100,000. This solution provides the continuing of withholding tax interest by banks. The taxpayer will declare the amount of interest raised to be added to the total income.
The second scenario provides the increase of existing tax rate in deposit interest from 10% to 15%. This might be accompanied by a separate tax of same rate in income from real estate.
(source: capital)
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