Hundreds of self-employed people and freelancers marched through the streets of Athens and other Greek cities to protest against a new tax bill that would subject them to notional income in a bid to combat tax evasion, the government says.
Holding banners and placards, hundreds of lawyers, academics, traders, taxi drivers and other professionals such as physiotherapists gathered at Korai Square on the morning of November 22 and marched to the Ministry of Finance building in Syntagma.
They chanted slogans against the government, claiming it was targeting them as tax evaders. They demanded the repeal of a tax bill that taxes them “horizontally and unfairly.”
Χιλιάδες ελεύθεροι επαγγελματίες διαμαρτυρόμενοι αυτήν την ώρα στο κέντρο της Αθήνας ενάντια στο νομοσχέδιο, που όπως καταγγέλλουν τους δίνουν την χαριστική βολή pic.twitter.com/y52vUkXmi1
— EFSYN (@EFSYNTAKTON) November 22, 2023
Scientific and professional organizations took part in the demonstration: Plenum of Presidents of the Greek Bar Associations, Technical Chamber of Greece, General Confederation of Professional Tradesmen of Greece, Hellenic Dental Federation, Professional Chamber of Athens, Geotechnical Chamber of Greece, Technical Chamber of Athens, Greek Confederation of Commerce and Enterprise, Veterinary Association of Greece, Coordinating Committee of Notary Associations of Greece, Commercial Association of Athens, Federation of Bailiffs of Greece, Medical Association of Athens, Union of Dieticians and Nutritionists of Greece, Panhellenic Association of Physiotherapists. It is symbolic that the Panhellenic Federation of Associations will take part in the mobilization professional market sellers. Similar demonstrations took place in other major cities of the country.
What is the problem with the new tax? The Greek Ministry of Finance submitted to parliament a bill aimed at the fight against self-employed people who systematically declare low annual incomes. However, in fact, the adoption of the law will lead to a massive closure of private business, since not all entrepreneurs evade paying taxes (this is what the government thinks). And for them, the new tax law will be a death sentence, forcing them to close their business and leave – either on unemployment benefits, or get a job with more “successful” businessmen (the authorities hope that these will be large companies).
In a conversation with reporters, sources in the Ministry of Finance said that the changes will affect the taxation system for self-employed people, and not the tax rates that will remain unchanged. But here the officials are lying. The point is that in Greece income tax tax is calculated at a progressive rate: so, if your income is up to 10 thousand euros per year, you will have to pay 9%; tax for income from 10 to 20 thousand euros will be 22%; from 20 to 30 thousand euros – 28%; from 30 to 40 thousand euros – 36%; with income of 40 thousand euros and above you will have to pay a maximum rate of 44%.
Considering the price level in the country, as well as the fact that most entrepreneurs also pay VAT 24%, social insurance, and other indirect taxes, which ultimately amount to another 10%, declaring high incomes is a rather risky business. Your income simply may not be enough to pay taxes.
The reason why the authorities want to change this system is that according to an analysis of income declarations for 2022 carried out by the Independent Directorate of State Revenue AADE, half a million self-employed workers (just under 70%) declared incomes of up to €10,000 per year, which less than the minimum wage. This means many employers are declaring less income than the people they employ, the sources said.
According to Kyriakos Mitsotakis and the officials from the Ministry of Finance who support him, this is impossible, although it is a generally accepted world practice. But, as we have said many times, the Greek authorities live in a different world, which has little contact with the real one in which the rest of the country’s population lives.
In a conversation with reporters, sources in the Ministry of Finance said that the changes will affect the taxation system for self-employed people, and not the tax rates that will remain unchanged. But here the officials are lying. The point is that in Greece income tax tax is calculated at a progressive rate: so, if your income is up to 10 thousand euros per year, you will have to pay 9%; tax for income from 10 to 20 thousand euros will be 22%; from 20 to 30 thousand euros – 28%; from 30 to 40 thousand euros – 36%; with income of 40 thousand euros and above you will have to pay a maximum rate of 44%.
Considering the price level in the country, as well as the fact that most entrepreneurs also pay VAT 24%, social insurance, and other indirect taxes, which ultimately amount to another 10%, declaring high incomes is a rather risky business. Your income simply may not be enough to pay taxes.
The reason why the authorities want to change this system is that according to an analysis of income declarations for 2022 carried out by the Independent Directorate of State Revenue AADE, half a million self-employed workers (just under 70%) declared incomes of up to €10,000 per year, which less than the minimum wage. This means many employers are declaring less income than the people they employ, the sources said.
According to Kyriakos Mitsotakis and the officials from the Ministry of Finance who support him, this is impossible, although it is a generally accepted world practice. But, as we have said many times, the Greek authorities live in a different world, which has little contact with the real one in which the rest of the country’s population lives.
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