Election 2023: taxation as a stumbling block

Issues related to the economy and, in particular, to tax policy, are heating up the political situation on the way to the elections to the Greek parliament, which are scheduled for June 25, 2023.

Statements by SYRIZA’s Dionysis Theboner and Nikos Farantouris, as well as Eleni Chronopoulou, Panagiotis Dudonis and PASOK’s Nikos Androulakis himself, sparked a fierce confrontation, with sharp responses from Kostis Hadjidakis and Akis Skertsos.

Be that as it may, the economy has long become an instrument of the election race, and, undoubtedly, this topic is the main one for discussion.

Scandals expected to continue following statements made today by Popi Tsapanidou that the government’s SYRIZA program includes emergency taxation of windfall business profits and statements by PASOK’s Stefanos Parastatididis about ENFIAin connection with which Charilaus Trikupis had to make an explanatory statement.

“They are interested in who will be the first in opposition”

This issue was also raised by the chairman of the New Democracy Party, Kyriakos Mitsotakis, speaking yesterday at a rally in Rethymno:

“Our opponents are the ones who ‘lost their eggs and chickens’ and one day they tell us they will increase the tax on contributions again. Now PASOK comes in and tells us that they are going to increase ENFIA, they will increase the tax on dividends. Every day they tell us something new.

Perhaps they can afford it because they themselves have given up the responsibility of running the country. What are they telling us? “We are interested in who will be the first in the opposition.” People don’t care, people vote for the government, not for the opposition,” Mitsotakis commented scathingly.

Confrontation between Tzapanidou and Skertzos

Previously, SYRIZA spokeswoman Poppy Tzapanidou spoke to Skye about a tax on excess business profits. In particular, when asked “where will SYRIZA find the money to finance the three social interventions it announced it would pass legislation in the first 50 days of its government”, Tzapanidou replied: “With the help of an emergency tax on windfall business profits.” Akis Schertzos, who was on the panel, did not ignore this and commented:

“It’s 3.5 billion euros in business taxes for the first 100 days of SYRIZA, 3.5 billion euros in taxes, haratzi. Do you know what that means? Investment flight, business flight and unemployment.”

Skertsos said earlier that the interventions Syriza is talking about cost 3.5 billion euros. In particular, he said that the cost of reducing VAT on food from 13% to 6% is 1.5 billion euros, the cost of reducing the special tax on fuel consumption to the lowest rates is 2 billion euros. The total cost of the two key SYRIZA measures is 3.5 billion euros.

Androulakis and PASOK’s clarification on Parastratidis

Nikos Androulakis yesterday from Chios insisted that PASOK’s tax proposals, for example, for dividend payers, are aimed at supporting the middle class, while ND and Akis Skertosos spokesman stressed that there are three new taxes in the Harilaou Trikoupis program, in resulting in increased taxes on dividends, business and parental benefits.

Mitsotakis’ “new ally” Mr. Skertosos argues that PASOK’s dividend tax policy is unfair, hurting the middle class and hurting the Greek economy. New Democracy introduced a 5 percent tax on dividends. It doesn’t matter if you have 10,000 dividends, 70,000 or 2 million,” said the leader of PASOK, citing a dividend of 70,000 euros as an example.

At the same time, PASOK MP candidate Stefanos Parastatidis has ignited the fire with his statements about ENFIA. When asked if PASOK would support ENFIA, he replied: “Of course they need to be strengthened for redistribution, and what needs to be done is to reduce indirect taxes.”

“Direct taxes, which are related to the parental inheritance tax, property tax, this is ENFIA, these are taxes that mainly apply to the haves, these are taxes that should be kept, and taxes that should be reduced are indirect taxes,” – concluded the PASOK candidate, causing a reaction from the participants in the discussion.

After that, PASOK was quick to issue a statement, clarifying that “nowhere in its program does it speak of an increase in ENFIA. Our position is a gradual reduction, with priority on protecting the weakest Greeks and the middle class. We also propose regarding taxes, which, in mainly affect the middle class and vulnerable segments of the population, such as indirect tax cuts, payroll tax cuts, and tax cuts for families with children.”

Parastatidis himself, in a Facebook post, calls it a one-way street: “I read the ND ‘line’ in the media about my statement on the morning show OPENthat I said “we will strengthen ENFIA as PASOK”. They made the usual induction #montaziera, since I was talking about increasing direct taxes and reducing indirect taxes, that it is about strengthening ENFIA.”

Chronopoulou and Dudonis

PASOK political planning secretary Panagiotis Dudonis’ statement on taxation of profits also sparked controversy, following a related statement by the party’s candidate for state elections, Eleni Chronopoulou.

In particular, Mr. Dudonis, speaking on Sky TV, said that the tax scale would be in effect, i.e. 5% tax on amounts up to 50,000 euros, 10% on amounts from 50,000 to 100,000 and from 10% to 15% on amounts from 100,000 and above.

This was preceded by the “sard (mistake)”, as she called it, by Eleni Chronopoulou, who, during an interview on ERT, in one of the excerpts of her speech, wanting to answer a question about taxation, said that her party’s program is aimed at increasing taxation for middle class.

“Guys, thank you very much for my first virus, but unfortunately – for you – there is no news, I was sardanized. I wanted to reduce, obviously, not increase,” she wrote on Twitter.

Akis Skertsos commented on behalf of the ND, speaking of “martyrs number 2” after the incident with SYRIZA, placing in the frame, except for Ms. Chronopoulou, and PASOK state deputy Panagiotis Dudoni. In a TV interview, Mr. Dudonis raised the issue of taxation of dividends.

Debts to EFKA

Controversy was also caused by the statement of Dionysius Theboner that the health care of citizens indebted to the EFKA was also hit by the New Democracy.

“From next Thursday, June 1, thousands of freelancers and farmers are at risk of being left without medical care due to the expiration of the adjustment or repayment of their debts to EFKA,” Dionysis Theboneras, head of the SYRIZA-PS election committee, emphasized in a statement, adding:

“After the movable and immovable property of small and medium-sized enterprises, the government has even targeted their medical care, showing extreme heartlessness. We have been warning for several months that professionals and farmers should breathe a sigh of relief by adopting a new debt regulation with a reduction in principal and a long repayment period. a solution that will also solve their health problem.”

Immediate was the response of Akis Skertzos, who spoke of SYRIZA’s “hypocritical noise about the health insurance of uninsured freelancers”, stating, among other things, that “they built a new oven and bake the same buns”.

Hadzidakis vs Faraduris

Kostis Hatzidakis also responded by criticizing claims made by SYRIZA MP candidate Nikos Faradouris that benefits play a supporting role.

In his post, Hatzidakis commented on the two politicians’ claims, stressing that SYRIZA’s “new team” is proving even worse, adding: “After Mr. Farantouris said electricity tariff subsidies were the ‘wrong priority’, Mr. Teboneras attacked favorable freelance insurance capacity provision voted for by SYRIZA. From storm to dizziness.”

https://twitter.com/K_Hatzidakis/status/1663556192776654849

Previously, he called Nikos Faradouris Katrugalos number 2: “Yesterday, Katrugalos number 2 appeared! Mr. Faradouris. He called energy surcharges on electricity tariffs the ‘wrong priority’. In other words, he told us that we made a mistake giving them. And what would have been it is better to leave our vulnerable fellow citizens unprotected, for example in Peristeri, Egaleo, Nea Ionia, during the energy crisis!” wrote Mr. Hadjidakis.

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