Prime Minister George Papandreou’s socialist government is considering the cut, agreed by the EU, IMF and European Central Bank (ECB), in an attempt to appease conservative opposition to a new bailout.
“The opposition party proposed to boost the economy by cutting business and indirect taxes,” said George Naskaris, head of tax at Koutalidis Law Firm, pointing out that the government was willing to discuss cutting VAT rates, but a corporate tax cut was not on the agenda.
“The reason is that VAT is considered by the socialist government as an unjust tax since it burdens equally the rich and the poor,” said Naskaris.
While the VAT cut is being used as political horse trading to ensure opposition support for a new international loan, the more pressing concern is...
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