Early next year, the taxes in favour of third parties are expected to be abolished. They have been paid for years in Greece, but are applied nowhere else in the world.
Until very recently, no one was willing to state the exact number of those taxes, and the government even asked the citizens for help - to provide information about themselves to the institutions.
Most of the taxes that will be abolished practically fund the social security system. In essence, they only aggravate the duties of citizens, without any return being provided.
The abolition of taxation in favour of third parties is a prerequisite the Greek government must fulfil in order to receive the second instalment from the EU for the amount of 1 billion euro.
At the same time, this move is expected to cause a deficit of around 470 million euro in the special insurance funds, such as those of the lawyers, engineers, military personnel, bakers, chemists, priests and others.
The taxes that will be abolished are included below:
- Two fifths of the income of the relief insurance fund for civil servants are received from the telecommunications company of OTE and are used for paying the pensions of the Special Relief Fund for officials suffering from tuberculosis.
- 0.85 percent of the monetary penalties and imprisonment penalties turns into cash and is used by the relief insurance fund for the lawyers of Athens.
- In the case of new information or any changes regarding the statute of a company, the company pays the following amounts to the relief insurance fund for the lawyers of Athens: 1.1 percent of the capital of sole proprietorships and limited liability companies for submitting company statutes to the District Court and 2.5 percent of the companies’ capital for any publication of the representation agreement acts and their terms.
- 2 percent of the selling price of cement that goes to the auxiliary fund of the personnel working in cement companies.
- 2 percent of the rental income of municipal buildings and construction sites provided to the relief fund for municipal employees.
- the income from issuing permits and certificates for church marriage, and 4 percent of the invoices for expenses regarding the sale of candles in favour of the insurance fund for priests.
- 0.5 percent of the annual revenue of all insurance funds benefits the relief fund of the National Social Security Fund.
- 10 percent of the outstanding winning tickets at the races and 0.5 of the gross revenue from bets that are paid to the relief fund of the racecourses' facility staff.
- 1 percent of each user account and 1 percent of each delivery of the National Company for Water Supply that go to the relief fund of the employees in the company.
- 0.01 percent on the quantity of cement, alcohol and flour produced that are deducted in favour of the relief fund for chemists.
- 2 percent of the annual income for medical research on learner drivers which is paid to the relief fund for civil servants.
- 0.5 percent of the value of military construction that goes in favour of the Officers’ Independent Construction Organisation.
- 1.5 to 3 percent of government spending on office supplies, rent, deliveries and projects in progress that goes in favour of the pension fund for civil servants.
- 0.29 to 0.44 euro for each bed in private clinics, which is deducted in favour of the relief fund for doctors.
- 0.40 euro for each 25 kg of flour and 2.9 percent of the amount paid to the Federation of Bakers.
- 0.1 percent of the annual turnover of oil companies provided to the relief fund for their employees.
- 1 to 5 percent of the value of different insurance policies paid to the fund for professional insurance of employees in insurance companies.