The Greek market has risen strongly today after the Finance Ministry announced a text for new tax legislation. The new text is aimed at aiding recovery, with the reduction of taxation on company profits.
Greece’s General Index was up 2.54% to 1575 points at the day’s halfway point, its highest level in three months.
The tax law bill, which was discussed during yesterday’s ministerial session, will be presented to EU-IMF envoys arriving in Athens tomorrow. This will see the tax in non-distributed profits drop from 24 to 20%, and a new 25% tax on distributed profits, instead of the current progressive tax up to 40%. The bill presented by the Finance Ministry also features a hard line against tax evasion, with prison sentences to be handed down to those with debts of 5,000 euros or more, and up to ten years for debts of over 150,000 euros. Prison terms can be avoided upon repayment.
However, there is not yet an agreement on the measures with the Ministry of Justice, which wants higher thresholds for the introduction of penal sentences.
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