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Victoria Mindova

Ten Greek public organizations threaten to sue the new government of PASOK if it fails to apply immediate changes related to taxation of the presented real estate tax reform. The main concern of the experts is that the increase in tax assessments of real estate and direct property tax increase will lead to freezing the market and deepening economic recession. According to representatives of public organizations involved in public dialogue about changes in the tax system, the changes envisaged by the government of Giorgos Papandreou are unconstitutional and prejudicial to the public as. Their opinion is that while the country is in economic crisis, tax assessments should be reduced to stimulate the market. Big property may be considered by its tax (not market) value of over one million euros, says the Union of real estate Owners. Excessive burden of the tax changes will affect most heavily on small and medium enterprises. Vassilis Korkidis, President of the Hellenic Chamber of Commerce, expressed his concern that changes in the tax system will cause a domino effect which will lead to a number of failed small family businesses, private industries and decline in quality of life in general. 

"We currently have a market without buyers. Experience from previous years shows that every time you resort to raising the tax assessment values, the real estate market freezes for at least half a year. That would be disastrous for the Greek economy," said Yiannis Revitis, Secretary of the Union of Greek real estate brokers. At the joint news conference present were also representatives of the Bar Association in Greece, Technical Chamber, the Union of Notaries, the Federation of Greek builders and others. The overall assessment of the various agencies was that the tax reform in its current form is inefficient and will lead to "disastrous consequences for the local economy." 

At the press conference the representatives of various organizations announced that the Prime Minister of Greece Giorgos Papanderou did not take into account any of their proposals submitted for changes in the tax system, regardless of the announced public dialogue. Members of the engineering, construction and trade unions were invited to participate in the working group to create a new legal framework in the tax system, as representatives of the real business. However, the government has failed to take into account any of their proposals submitted for changes in the tax system. In response to the management indifference, representatives of public organizations have sent an open letter to Prime Minister Papandreou. It says that if the tax reform issue is not reconsidered, this will be interpreted as a "mockery of public institutions in the country” and they will resort to legal action.