Christos Staikouras: A new “support package” is coming for households and businesses

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The Minister of Finance announced a new network of financial interventions in order to help “coherent citizens and businesses” Christos Staikouras speaking today on a private television station.

As the minister explained, this “package” aims to address the dual crisis, energy and health.

In the field of the energy crisis, he pointed out that “we have not yet covered the problem with the increases in energy prices”, but “the Greek State will find ways to help even more”. He stated that together with the competent ministry, forms of support are sought for both December and 2022.

The implementation of the budget and the strong recovery of the economy seem to leave room for some aid, but without disturbing the fiscal targets, as noted by officials of the Ministry of Finance.

According to our information during the budget debate, which starts this afternoon, the government is expected to announce an extension of the repayment of the advance from June instead of January, an additional six months for the use of tax credit and insurance contributions in the context of the subsidy of fixed costs, a credit of at least one month for cheap transfers of real estate with the old objective ones, while the formation of a new package of subsidies for gas and electricity is on the table.

For natural gas (after the new price jump), the doubling of the discount from 15% to 30% through DEPA Commerce is expected to have retroactive effect for December consumption while the “package” of energy subsidies will extend until the end of the first quarter , but with the introduction of income and other (perhaps consumption) criteria.

The new grid includes:

  • For the repayable deposit will give the possibility of a six-month extension at the beginning of repayment of the amounts with the first installment to be paid in June and not in January.
    It is recalled that after the “haircut” of amounts up to 75%, about 700,000 companies are required to return to a horizon of five years and starting from January 2022, an amount of 3.3 billion euros (in total about 8 billion euros.)
  • For the fixed costs, another semester is expected to be given to more than 30,000 companies, to utilize credit balances, offsetting taxes and levies, and which they will not have utilized by the end of 2021.
  • On the fair value front, facilities are expected for those attempting to complete real estate transfers in the final weeks of the year. utilizing the current fair values, before increasing from 1 January.
    It is planned to provide the possibility of transfers for at least another month – maybe more – with the old prices for those who submit a real estate tax return by the end of the year.
  • The chances are significant that the government will extend the deadlines for the inclusion of those affected by the pandemic in the regulation of 36-72 doses, as so far no substantial interest has been shown.
    Of the 800,000 companies, self-employed and generally natural persons whose tax liabilities had been suspended, only 30,000 (out of a total of 830,000) have applied to join the 36-72 installment arrangement.
  • The amount of debts to the Tax Office and the Insurance Funds which were created from March 2020 to July 2021 and can be regulated reach 2.6 billion euros.

AADE sources estimate that As the deadline, which is December 31st, approaches, the mobility on the relevant platform will intensify, attributing the low number of applications to the fact that the first installment must be paid within three working days, while if it is submitted at the end of the month payments start from the end of January 2022.

Under the current legal regime, debtors affected by the pandemic have the opportunity to settle their debts in up to 72 installments. Specifically, they can choose 36 interest-free installments or 72 interest-bearing interest rates of 2.5%.
That is, if the taxpayer chooses to repay the debt in 40 installments, these will be interest-bearing.

Reportage: Costas Tsavalos

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