The Greek government is considering to abolish the solidarity contribution
The Greek government is considering to abolish the solidarity contribution
  Economy  |  Taxation

The Greek government is considering to abolish the solidarity contribution

Subjected to the financial conditions.
RE+D magazine
18.01.2022

The Greek government is considering to abolish the solidarity contribution from 2023 onwards according to sources from the Ministry of Finance.

This will be effective as soon as the new fiscal rules become known by the end of the year.

It should be noted that the budgetary cost of taking such a measure is high and therefore in order for the lenders to give the green light, given that Greece is still under enhanced supervision, there should be sufficient fiscal space.

For this year, the solidarity contribution has been "frozen" for private employees and the self-employed, while it is normally valid for civil servants and retirees.

It is worth noting, however, that there are public officials (judges) who have appealed against the decision to apply the measure of solidarity contribution to the State and the relevant decision is awaited.

Consequently and unless something changes, the final decisions of the government on what will happen with the solidarity contribution will be taken at the end of the year, when the landscape for the new fiscal rules has been clarified, while the escape clause regime.

At the same time, there will be a clear picture of whether and how much the fiscal space will be, for the taking of permanent mitigation measures.

At the same time comes a Bonus system for selected sectors of the State. Specifically, the government is preparing to present in 2022, the Bonus System, which will operate on a pilot basis and with low budgetary costs.

The philosophy of the new system could be based on two pillars, according to sources from the Ministry of Finance, permanent goals and rewards and in addition targeted areas related to the implementation of government goals.