Greeks work 177 days a year to pay taxes and fees

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Greek taxpayers will have to work almost half the time to meet their obligations to the state, with payments to the tax authorities and the National Social Security Fund eating up 177 out of 365 days.

The abolition of the solidarity tax on workers’ income from 1 January 2023 resulted in a slight reduction in the amount of working time required by households to pay taxes and social security contributions.

According to a study by the Center for Liberal Studies (KEFIM), dedicated to “Tax Freedom Day”, in 2023, to fulfill tax and social security obligations, citizens worked 7 days less than in 2022, and the total working time was 177 days.

The data shows that the tax burden has been decreasing since 2020, which can be attributed to the gradual reduction in tax rates and tax abolitions, as in 2020 it was 183, in 2021 – 180, in 2022 – 184, and in 2023 it decreased to 177 days.

Based on updated economic data from the center, Tax Freedom Day ended up coming 6 days later than originally calculated, which is explained primarily by overpayment of taxes in 2023, but not by the introduction of new ones.

According to the main findings of the study:

June 27 became Tax Freedom Day in 2023, based on updated tax and Social Security earnings data. This year we worked for the state 177 out of 365 days a year, which is 7 days less than in 2022. This reduction was achieved mainly due to the abolition of the solidarity tax from 1/01/2023.

If we include the general government’s deficit for 2023, which represents future taxes, the number of days worked for the government in 2023 will be 187, which is 7 days less than in 2022.

Revenue from taxes and contributions increased by 1.9% as a percentage of net national income compared to the stability program forecast (April 2023), resulting in an increase in the number of working days for the government by 6 days compared to the original calculation of Tax Freedom Day .

Commenting on the results of the study, Nikos Robapas, executive director of the Center for Liberal Studies, noted: “The fact that in 2023 we worked 7 days less than in 2022 to pay taxes and contributions to the state is a positive thing. The fact that the state’s overachievement of tax revenues is also positive is not related to the introduction of new taxes. Now It is important that the reduction of the tax burden for Greeks continues, and the first step for the government will be to use the achieved overachievement in this direction when planning and implementing fiscal policy for 2024.”

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