Prime Minister Kyriakos Mitsotakis made the theme of his keynote speech at the Thessaloniki International Fair abundantly clear: raise the disposable income of as many people as possible in order to counter the effects of inflation.

There are clear winners among the recipients of the €1.6 billion tax cuts package: families, especially those with 3 or more children; the young, many of whom will pay no taxes; residents of small islands (population under 20,000) and villages, who will see lower VAT and property taxes, respectively.

According to Mitsotakis, more than 4 million will benefit from the measures.

Tax rates will be cut by 2 percentage points, more for families and significantly more for those with 3 or more children.

A new 39% tax rate will be imposed on incomes ranging from €40,000 – € 60,000, who know pay the top rate, 44%.

Pensioners will get extra support by abolishing some limits on their pensions imposed during the financial crisis.

Tax cuts will also affect those earning income from rentals; those earning from €12,000 – €24,000 will pay 10 percentage point less. Mitsotakis, though, noted that the average monthly rent declared by property owners is €280, imjplying that they were evading taxes big time.

As part of the effort to alleviate housing shortages, beside subsidies on rent, will be the construction of 2,000 apartments in former army bases. The army itself will undertake the construction and 25% of the apartments will be reserved for armed forces personnel.

Mitsotakis also mentioned other reforms, such as the institution of a school-leaving baccaleaureate, for which he asked the agreement of opposition parties that agree on principle.

Finally, the Prime Minister had a message for his own ministers: work faster, harder and show no arrogance.

Source: Ekathimerini.com