Greek cash-for-reform proposals

New cash-for-reform proposals to save nearly €7.9bn over the next two years are by far the biggest combination of tax hikes and spending cuts offered by Greek Prime Minister Alexis Tsipras to date
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PRIMARY SURPLUS

Primary budget surplus: Government revenues minus its expenses when interest on national debt is excluded. New Greek proposal accepts creditors’ surplus targets in full

2015: 1.51% of GDP. 2016: 2.87% of GDP TOTAL: €7.899 million
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PENSIONS

Early retirement to be phased out gradually by 2025. Special €57 to €230 a month benefit for low-income pensioners to be replaced from 2020

Savings (€, millions) 2015 2016

Early retirement accruals 60 300

Main contributions increase of 3.9% 350 800

Health contributions increase of 1% 135 270

Increase in supplementary contributions 120 490

€2,525 million
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VAT REFORMS

New three-tier structure with rates of 23%,13% and 6%. Lenders wanted two rates of 11% and 23%

€2,040 million
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CORPORATE

Tax reforms include one-off levy of 12% on businesses that make profits of over €500,000. Rise in corporation tax from 26% to 29%

2015 1,165

2016 1,065

€2,230 million
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OTHER

Increases in luxury tax on pools, planes, large cars and private boats over 10 metres

Defence spending cuts 0 200

TV advertising tax 100 100

Luxury goods tax 47 47

Electronic gambling tax 35 225

4G, 5G phone licences 0 350

€1,104 million
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Sources: Kathimerini, Financial Times

Picture: Associated Press

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