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The Ministry of Finance described 849 cases of tax exemption up to 30 September 2013, amounting to 4.3 billion euro. These affect individuals and legal entities, real estate transactions, consumer taxes, VAT, special taxes within the medium-term programme for 2014-2017.

These cases have been submitted to parliament and are to be assessed, as well as losses for the state resulting from them. It is noted that, according to the Troika, for 2015-1016, there is a financial gap amounting to 3.9 - 4.2 billion euro, an amount that can be changed. Measures for its closure include the repeal of tax exemption, a reduction of the public investment programme and other budgetary expenditures.

178 cases of exemptions have been recorded in the taxation of incomes of individuals (salaried workers, pensioners, farmers, freelancers, sole proprietorships, etc.) including income tax. In 2012, there were 10,723,322 cases of tax exemptions (each taxpayer has used more than one exemption).

The declared amounts according to cost categories that have been exempt from taxes amount to 11.21 billion euro, the exemption amount (a reduction of tax or revenues) was 3.53 billion euro, and the benefit to the taxpayer and at the same time - loss for the state, was 1.02 billion euro. These include:

• 51.7 million euro from life insurance expenditures
• 21.7 million euro from tuition fees
• 104.1 million euro from social security contributions
• 52.2 million euro from rents for principal residence of students
• 3.6 million euro from energy modernisation of buildings
• 317.8 million euro from the repeal of the tax exemption of housing in the border regions of families with children

Taxation of capital

It refers to taxation of inheritances, donations, profits, parental benefits, transfer of real estate and property tax. From the inheritance tax, the cost to the state amounts to 39.9 million euro, from donations - 56.7 million euro; from transfer of property - 156.4 million euro, and from property tax - 386.8 million euro. In total, the Ministry of Finance estimates that the specific exemptions have cost the budget 639.8 million euro.

Moreover, the tax exemption for the acquisition of a first home (with parental benefit, donation, transfer, etc.) is worth 102.6 million euro.

Reduction of VAT

Exemptions which are implemented today for the VAT regime are worth a total of 942.3 million euro. Among these are:

• Over-reduced coefficients (6.5%) on books, newspapers, medicines and vaccines, hotels, theatres, etc. to the amount of 533.4 million euro
• A 30% reduction in coefficients on the Aegean islands, which cost the state 291.3 million euro
• Release of services of the Hellenic Post - 26.6 million euro
• Release of activities of the national radio and television networks (except commercial activities - 30.3 million euro
• Exemption of local government organizations - 52.1 million euro

Special consumption tax

Exemptions in this category cost the state 989.6 million euro. The highest price includes exemptions on energy products - 564.7 million euro, followed by those on alcohol - 421.7 million euro. In vehicles tax, exemptions are worth 54.8 million euro and refer to large families, disabled people, monasteries, government cars, diplomats, etc.

The bill for real estate – in Parliament

Next week, the controversial bill for the general property tax is expected to be submitted to Parliament. The government aims to complete its consideration before voting on the budget on 7 December or 8 December and before the Eurogroup meeting on 9 December.

According to information, the Ministry of Finance is making efforts so that this could happen and it is highly likely that this bill will be considered urgently. It is not excluded that the draft could be submitted on 28 November and considered by the Finance Committee the next day and voted on 30 November or on Sunday, 1 December. Parliamentary circles say that if it is submitted next week, the emergency procedure is the only way, since the Finance Committee will deal with the budget in the first week of December and will not be able to consider it.