The Greek government and the institutions representatives on Wednesday reached an agreement on the 1.8 billion euro package of indirect taxation, according to a government official.
The same source disclosed that this package provides for the increase of the core VAT from 23 to 24 percent while the lower 13 percent VAT rate will remain the same.
Nevertheless, the negotiation on the fiscal figures is still in progress and there is no agreement on the income taxation.
The same official noted that the government’s economic staff insists on the tax free threshold at 9,091 euros while IMF demands it is reduced to 8,182 euros. European lenders propose its gradual reduction.
The IMF’s Delia Velculescu attended the latest round of talks between the Greek government and its international creditors, which began at 10am on Wednesday. As repeatedly argued by a number of government officials, the aim is to conclude the bailout program review within April.
Better stats and privatizations
Meanwhile Eurostat is expected to publish its latest figures regarding the Greek economy in 2015, which are believed are to better than the initial estimations. In a phone call to German Chancellor Angela Merkel on Tuesday, Prime Minister Alexis Tsipras argued that these figures must be taken into consideration for the review.
Additionally, an unnamed Finance Ministry official underlined that the Greek government has rejected the call by its creditors for ‘precautionary’ measures worth 3 billion euros. These measures are to be introduced if primary surplus targets are not met.
The same source noted that the institutions have not accepted everything provided in the new tax and pension system reform bill. Nevertheless, the Greek government is open to amendments.
In Tuesday’s talks with Finance Minister Euclid Tsakalotos, which focused on the new privatization fund, the institutions are said to have demanded that its management be fully independent. They also called for the privatization of 27 public bodies and utilities (rather than the 11 the government has offered), which controversially includes DEPA, ELPE, EYDAP, EYATH and DEI.
Regarding the sale of independent power transmission operator ADMIE, the plan being developed at the Ministry of Energy provides 51% of the firm going to the State, 20% to private investors, while the remaining 29% of shares will be publicly traded.
Sources: ANA-MPA, tovima.gr
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