How much money will citizens gain from the abolition of the solidarity levy – Table with examples

How much money will citizens gain from the abolition of the solidarity levy – Table with examples
How much money will citizens gain from the abolition of the solidarity levy – Table with examples

Today, Wednesday, the Parliament will vote on the supplementary budget and with it the abolition of the solidarity levy.

According to the amendment submitted yesterday, Tuesday, to the Parliament by the Ministry of Finance and which will be implemented from January 1, 2023, the definitive end of the solidarity levy is foreseen. The implementation of the abolition of the solidarity levy is part of the announcements made by Prime Minister Kyriakos Mitsotakis to the TIF.

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In particular, one of the heaviest and most unfair forms of taxation, the solidarity levy, is finally entering the history of taxation, for all taxpayers without exception, i.e. for civil servants and pensioners as well.

According to the provision that was included in the amendment that will be voted today, Wednesday, in the Parliament, the special solidarity levy is abolished, for all incomes obtained from the New Year onwards, while for the year 2022 the same exemptions will apply as for year 2021, so that non-salaried private sector incomes, e.g. self-employed income or income from real estate, which will be acquired this year and will be taxed in 2023, not be subject to levy.

According to the calculations of the Ministry of Finance, the measure increases the disposable income of 1.2 million workers, while the annual cost amounts to 765 million euros.

The package of 12 measures for the recovery of the economy that will be voted on today

In detail, the 12 measures that will be voted on today, Wednesday, in the Plenary Session of the Parliament:

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  • Reduction of insurance contributions of employers and employees of the private sector by 3 units for 2021. Cost: 820 million euros.
  • Abolition of the solidarity levy for private sector employees, freelancers and farmers. Cost: 770 million euros.
  • Establishment of a subsidy program for 100,000 new jobs. Cost: 350 million euros.
  • Extension of the Co-Working program until the end of 2020. Cost: 190 million euros. The possibility of temporarily suspending contracts in specific sectors continues. Cost: 330 million euros.
  • Implementation of the 3rd round of refundable advance payment and the launch of the 4th. Cost: 2.1 billion euros.
  • Establishment of the super-rebate measure for digital and green fixed capital investments. There will be a small loss of revenue, which depends on the amount of investments that will be made.
  • Payment of pensioners’ retroactive payments and crediting of amounts due to the new way of calculating pensions. Cost: 1.86 billion euros.
  • Abolition of ENFIA for residents of small, uninhabited islands of the country. Cost: 1.5 million euros per year.
  • Extension of the deadline for paying any tax and insurance debt for those affected by the coronavirus.
  • Extension of the application of a reduced VAT rate for specific products and services. Cost: 150 million euros.
  • Suspension of auctions for the 1st home of vulnerable households until the end of 2020.
  • Extending unemployment benefits and reducing the number of required IDs for seasonal workers. Cost: 230 million euros.

The total value of these measures amounts to 6.8 billion euros. and the total strengthening of the economy in the near future, adding the resources that will be channeled through the banking system, will amount to approximately 10 billion euros.

Examples from the abolition of the solidarity levy

First example

A public sector employee with a total income of 18,000 euros, 14,000 from wages and 4,000 from rent, will have a benefit of 132 euros, due to the abolition of the special solidarity levy.

Second example

A self-employed person with a total income of 30,000 euros, from two sources – 25,000 euros from business activity and 5,000 euros from dividends – will have a benefit of 676 euros from this year.

Third example

A private sector employee with a total income of 26,000 euros, only from wages, will have a benefit of 426 euros, due to the abolition of the special solidarity contribution

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Here is a table with the amounts that citizens gain from the abolition of the levy:

Table with the amounts that citizens will gain from the abolition of the solidarity levy
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The article is in Greek

Tags: money citizens gain abolition solidarity levy Table examples

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