Despite the tax storm that has since 2010 swept
all kinds of taxation (from VAT and property taxes,
to motor vehicle road taxes and income taxes on
both individuals and legal entities), tax revenues
for the year 2015 will be 8.1 billion euros lower
than those of 2010. In 2009, the incomes
declared by all individuals stood at 100.3 billion
euros. In 2014, they fell to 74 billion euros.
A similar situation applies to businesses: in 2009,
their declared taxable profits stood at 15.07 billion
euros. In 2014, they fell to 10 billion euros. In
other words, only the taxable income lost during
the 5-year period of the Memorandums amounts
to 32 billion euros. In 2009, Greece’s total tax rev-
enues stood at 49.724 billion euros.
Following the imposition of the first package of
measures they rose to 51.266 billion euros in
2010, only to collapse ever since. The decline that
started in 2010, and is still underway, has reduced
tax revenues to 43.162 billion euros in 2015.
The only tax that apparently has brought more
revenues to state coffers during these five years
is the property tax. This, of course, happens
because property owners have hardly any room
to react, especially in a property market where
even a fire sale is not possible.
Property taxes are expected to generate rev-
enues of 2.85 billion euros in 2015, as compared
to almost half a billion euros until 2010.
The middle class
Recently, the Hellenic Federation of Enterprises
(SEV) estimated that Greece’s middle class is
collapsing under the weight of over-taxation,
plummeting savings, and further impoverishment.
In today’s Greece, 4 workers are paying taxes
and contributions in order to pay the pensions of
3 pensioners and cover the needs to provide pub-
lic health services, education, justice, defence
etc. Obviously, this model is not sustainable.
Trade with Greece
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