New Democracy MP Manos Konsolas told Parliament that the government was cutting taxes and supporting incomes within what the country could afford. ‘It is easy for the opposition to outbid one another, and easier still to make promises that cannot be kept,’ he said.
Tax measures
Konsolas said advance tax for sole traders would fall from 55% to 50%. The business levy would be abolished outside Attica; in Attica it would be halved in 2027 and abolished in 2028. The tax rate on income up to €20,000 would fall to zero for families with three children and for those whose principal occupation is farming. The minimum assumed income for taxi drivers would be reduced.
Private-sector social insurance contributions would fall by half a percentage point from April. The incentive for electronic payments, allowing 30% of qualifying expenditure to be deducted from taxable income, would continue in 2027. Tax relief for previously vacant properties brought onto the rental market and the VAT exemption on new buildings would also continue in 2027, as would income tax relief for work to upgrade or renovate buildings.
Support for households and islanders
He said the payment for pensioners would be set at €400 net and extended permanently to all pensioners over 65 from November 2026, bringing the number of beneficiaries to 2.2 million. Those over 60 whose only pension is a survivor’s pension, people with disabilities and uninsured older people would also qualify.
Civil servants would receive a €500 Christmas payment on 16 December each year from 2027. The birth allowance for large families would increase by a further €1,000 per child.
Konsolas singled out an annual payment of €5,000 to encourage people to settle and stay on Kastellorizo, plus €1,000 for each dependent child. He said opposition parties voting against the measures would have to explain that choice to voters.
