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Victoria Mindova

The project for the introduction of a new 8% tax on the providing of services which cost over 300 euro raised the spirits in Greece once again for the last few days. Public institutions, citizens and private entrepreneurs turned into a serious opposition of the introduced innovation and their main argument is the fact that this is just another way for the government to reach in the pockets of the common citizens. After the increase of the VAT, the excise duties on the fuels, cigarettes and alcohol, the update of the tax bases of the buildings and the removal of most of the tax concessions, the eight percent tax on the services provided turned out to be the cherry on the top of the cake of the tax reform of George Papandreou’s government.

From the ministry of finance they clarified that it is not a matter of an additional tax, but it is about a preliminary deduction of a part (8%) of the due tax which will be paid after the end of the accounting year. The amounts paid throughout the year will be deducted from the due tax at the end of the year, however there will be no additional tax burden on the tax payers.

The main critics which the business circles in the country point out is that in this way the government deprives the private business of the working capital which has anyways decreased. “The government continues to impose measures which will lead to the absolute collapse of the local marker,” says in an opened appeal the chairman of the Athenian commercial – industrial chamber Kostadinos Mihalos. He stated that the actions of the statesmen remind of the old saying “no matter how long you knock on the door, the deaf would not hear you” and urged the economic advisors of the government to discontinue the social experiments related to the economic survival of the public. “In these times which are anyways difficult only the reviving of the private business and the rehabilitation of the public sector could bring results on the way of exiting the economic recession in which we are today” is explicit Mihalos.

The effect for the small businesses of the preliminary deduction of the due tax will be the tangible decrease of their liquid capital throughout the year, explains for GRReporter Tanais a self employed private accountant in Athens. “With the payment of 8% of the services provided throughout the year this will inevitably affect the small business,” he says. His opinion is that regardless of the accumulating of incomes in the national treasury at the end of the day such measures will not help for the rehabilitation of the economic growth in Greece.

On Thursday, April 8^th the new law for the taxation of the legal entities will be introduced for final voting. Until then all possibilities remain opened even the elimination of the eight percent in question imposed on the services provided. According to unofficial information the Ministry of finance is looking at the opportunity the value of the preliminary collected tax to be decrease to 5%. No matter what the result will be however, the merchants and the companies will not accept the new measure with indifference.