Permanent reduction of ENFIA property tax by 13% was announced by Prime Minister Kyriakos Mitsotakis.
The statement of Kyriakos Mitsotakis is as follows:
“The government is proceeding, today, with a new generous permanent reduction of ENFIA by 13%. It thus exceeds its commitment to a total relief of 30% of real estate taxation. A decision that is fair to society and beneficial to the economy. Which means that Greeks will now be required to pay, every year, 860,000,000 euros less than in 2018. And 350,000,000 less, in 2022 alone.
I feel the besiegement of the average income from the international energy crisis and the price increases it is causing as everywhere in Europe. That is why the State continues to cover part of the increases in electricity bills. It also insists on a steady de-escalation of taxes and levies to boost the disposable income of all households. And, on May 1, it will implement a second significant increase in the minimum wage.
With the new framework, 8 out of 10 of our fellow citizens will pay even less ENFIA. Many will pay the same amount. While, a small minority, about 6%, will see a reasonable addition. It is an elementary return to society as a whole, as the real value of property in some areas has doubled or even tripled.
Our complete plan for real estate will be presented shortly by the Minister of Finance. At its core, however, is the noticeable decline of the basic tax on buildings, while in the plots the reduction reaches 50%. Thus, the greatest benefit arises for properties in middle and lower value zones. In other words, this is a clear choice in favor of the the weakest and the middle class.
It is characteristic that from now on, properties worth up to 100,000 euros will have a 30% relief instead of the 60,000 euros that was valid until now. The tax escalation becomes fairer. The supplementary ENFIA, which ceases to exist, has also been integrated into this. While, as I said, the total reduction of charges for citizens amounts to 350,000,000 per year instead of the 70,000,000 provided by the budget.
The new initiative is based on the consistent economic policy we are following and allows for additional additional relief measures. It works in combination with other permanent regulations, such as lower tax rates, the suspension of the Solidarity Contribution in the private sector and the zeroing of the tax on parental benefits. But also cumulatively, with extraordinary interventions such as the double Guaranteed Income of December and the increased benefits to the low-income retirees.
It is, however, a realistic move, which does not exceed the budgetary limits. Because every step forward must be done in a way that will not lead to two steps back. Thus, our country remained upright and developed during the two-year crisis. This is how it will deal, now, with the temporary global turmoil. The country is standing, but so are the citizens. With our support and their own strengths.
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