Greek PM announces cuts to crisis-era taxes

ATHENS: Greek Prime Minister Antonis Samaras on Saturday announced cuts to unpopular taxes introduced at the height of the country's debt crisis, in a bid to show the nation that over four years of austerity are finally nearing an end.

   The Greek premier, whose conservative party is trailing in opinion polls behind the anti-austerity, radical leftist Syriza party, said a heating oil consumption tax would be cut by 30 percent and a "solidarity tax" would also be reduced.

   "This is the year that Greece has started to stand on its feet. It is still wounded, yes, but standing," Samaras said in his annual state of the economy speech marking the end of the traditional summer break. "It is still wounded, yes. But its wounds are healing and it is looking to the future."

   Buoyed by improved investor confidence and signs of economic stabilization, Samaras has pushed the country's EU and IMF lenders to start rolling back austerity to kick start growth and preserve the fragile political stability in Greece.

   Greek officials brought up the issue of tax relief at talks in Paris this week with the lenders as part of the country's latest bailout review, but there has been no confirmation yet they have agreed to the package. Samaras said details of the tax cuts would be presented in the country's draft budget to be announced in October.

   He also said a new taxation "roadmap" would be unveiled in the future, with the maximum income tax cut to 32 percent from 42 percent and the corporate tax rate reduced to 15 percent from 26 percent. A deeply unpopular property tax would also be cut, he said without providing any details.

   The government on Saturday also confirmed that Greece will show growth in the third quarter, its first quarterly expansion since the start in 2008 of a crippling recession that has wiped out nearly a quarter of the country's economy.

(Source: brecorder.com)