Greek Government’s Maneuver to Avoid Conflict

farmers-taxationIn an attempt to calm farmers the government proceeded to announce a new improved proposal for farmer taxation. During their meeting Greek Prime Minister, Antonis Samaras, heads of the Ministry of Rural Development, Deputy Minister of Finance, Giorgos Mavraganis and General Secretary of State Revenue, Charis Theocharis decided on a package of seven new proposals.

However, despite the government attempts, the farmers’ first reaction was negative. At the moment they are meeting in their roadblock in Nikaia in order to decide on a more dynamic course of action.

Farmers are exempt from revenue – expenses bookkeeping and only those with an income over 15,000 euros will have to keep a record of receipts.

In addition, farmers are exempt from the obligatory vocation fee for five years and they only have to submit their VAT return and their supplier-customer reports once a year. If they are three years before retirement they are also exempt from the above.

Under the new system, all farmers will be obligated to submit an annual VAT return. However, farmers who sell their products through third parties (groups or traders) are exempted from the obligation to pay VAT as individuals. Aggregated statements concerning costs will be submitted annually.

Finally, farmers included in the new system will have to pay a reduced advance of their annual income tax (concerning the 2015 statement) from 55% to 2.5%.