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Ten radical changes in the tax system will be introduced during the first trimester of 2010, in order to make it more objective, as PASOK promised during the pre-elections. Important changes will be introduced in the way of accounting for revenue and taxation of profits in natural and legal persons, and increasing excise and customs duties. The topic of control of irregular payers and offshore firms will be discussed.

Regarding taxing individuals a uniform scale of indexation will be introduced, which will ease the tax burden of persons from the weaker social strata with about €500 million, while revenue will again generate the same amount of tax on individuals with significantly higher incomes. Repealed will be the existing until now tax incentives for church properties and other incomes, which based on primary calculations, will bring an additional €2.8 billion to the state treasury.

Part of the 2010 innovation will be a full and true statement of income of citizens, including a detailed description of movable and real estate, taken loans, credit cards and other financial resources which hitherto were not included in the tax return. Changes will be introduced in the way entrepreneurs in the construction area were taxed until now. From the new type of taxation the state will collect an additional €700 million from builders, contractors, engineers, architects, landlords and taxi drivers.

Corporate taxation is being considered, in order to reduce the tax on profits of legal persons in case of reinvestment of profits. In regards to indirect taxes it was decided to raise taxes on alcohol and cigarettes by 10% and it is under question whether to raise fuel duty next year. Control over the activities of offshore companies will be strengthened and the results of the new measures are expected to ring around €500 million per year.

The new changes in the law on taxation of real estate with a high tax base (in other words expensive luxury properties worth over €600 thousand), revenues in the Treasury will surpass €700 million. From the changes in the law of succession, it has been calculated so far that the state will collect another €500 million. In terms of fiscal control introduced is a single objective system for selection of enterprises and persons engaged in professions, who will be checked. The ultimate aim of the new government is to collect outstanding Treasury amounts, which by the end of 2008 amounted to €29.5 billion. An important part of tax reform will be restructuring the tax administration and methods of control over its activities.

The new law for tax system reforms will be ready by the beginning of March 2010 and will enter the parliament for voting.