ATHENS, July 30 (Xinhua) -- Greek parliament approved on Tuesday a bill that overhaul a series of tax reductions, the first submitted by the new government.
The fast-track bill included the reduction in real estate tax (ENFIA) and an installment plan for outstanding tax debts by individuals and business owners.
The bill was approved by the ruling center-right New Democracy, leftist SYRIZA, the center-left Movement for Change (KINAL) and the nationalist Greek Solution. The Communist Party (KKE) voted present. While, the MeRA25 party did not approve the bill in principle but voted in favor of the settlement of the debts.
The newly elected Greek government headed by Prime Minister Kyriakos Mitsotakis brought to the Greek parliament as fast track the tax breaks and reforms which formed the core of its pre-election pledges.
"This bill could be the defining feature of the identity of the new government," Prime Minister Kyriakos Mitsotakis said, addressing the plenary, shortly before the vote.
According to the Greek premier, the bill has a social dimension at it applies to all taxpayers, especially the middle and lower-income groups.
It is expected to ease 4 million Greek households with the reduction of ENFIA by an average cut of 22 percent.
Meanwhile, with the settlement of debts to the tax service the government reduces the minimum monthly payment to 20 euros from the current 30 euros, and cuts the interest rate on to arrears from an annual 5 percent to 3 percent.
During the economic crisis that hit the country since 2008, over taxation through direct and indirect taxes put a heavier burden on the financially disadvantaged and middle-income people.
According to a recent research conducted by the Center for Liberal Studies (KEFiM), Greek citizens work on average 180 days out of the year to pay their taxes to the State.
The research indicated that 82 percent of taxpayers are disappointed by the imbalance between the taxes they pay and the services offered by the state. The results were presented this week on the occasion of the "Tax Freedom Day", a day when the average taxpayer theoretically stops paying his income to the State and starts allocating it for his own needs. For 2019, KEFIM estimates Tax Freedom Day was June 30, while last year was July 2.
Greece holds the fourth worse position among the 28 countries of the European Union, according to the research.
