Overreliance on indirect taxes

The Greek tax system presents important peculiarities compared to those of different European countries, chiefly owed to its accrued reliance connected indirect taxes. At the bosom of this structure is value-added tax (VAT), which is simply a cardinal source of tax revenue. VAT revenues are perpetually increasing, some successful implicit terms and arsenic a percent of total state revenues.

According to state fund data, from 2020 to today, indirect tax revenues successful Greece person accrued by astir 14 cardinal euros. From €24.2 cardinal successful 2020, they are estimated to transcend €38 cardinal this year.

Over the aforesaid period, nonstop tax revenues person accrued (by some €12 billion) but still autumn abbreviated successful implicit size and percent weight. This is simply a reversal of the representation prevailing successful respective EU countries, where the tax load is distributed much done nonstop taxes, which are considered fairer.

According to the latest European Commission data, Greece ranks 4th among EU countries successful indirect tax revenues arsenic a percent of GDP (17.3%), while revenues from depletion taxes correspond to 44.4% of each tax takings, when the European mean is 33.2%.