Prime Minister Kyriakos Mitsotakis will promise slow but steady tax cuts to the self-employed in his speech at the Thessaloniki International Fair.
The speech, widely anticipated for the package of handouts, tax cut and other income support measures, must satisfy many groups of voters.
Given spending rise constraints by the European Union, there is no fiscal leeway for bold moves such as the immediate abolition of tax down payments based on the previous year’s earnings or the minimum putative income, a measure best for lifestyle indicators, and enacted to crack down on tax evasion.
Giving up on any of the two immediately would mean a loss of €650-700 million in annual revenue from the down payments and €400-500 million from the minimum income. So, the changes will have to be more gradual, spread over four years.
The message the prime minister will want to send to the self-employed is that each tax return, starting in 2027, will result in a lighter tax burden, starting next year with a change in the tax brackets.
