IRS headhunters for 800 million euros

The messages coming from the revenue front are highly ominous in view of the crucial summits and the next evaluation of the Troika, which will put the Greek adjustment program under the microscope.

Georgakopoulos’ resignation from the position of head of the State’s tax collecting mechanism came at a time when the Prime Minister and Papakonstantinou are in Brussels for the "big bargain", while today in Athens the Finance ministry will announce the data of the first two months of 2011, which shows a great lag in the collection of revenue of about 800 million euros to meet the targets set by memorandum no 4.

Revenue showed a further decline in February compared to January, reaching 9,5% on an annual basis. And there are tax offices that show a decrease of 70% compared to last year due to receiving lower tax from incomes.

It is perhaps significant that the revenue from customs recorded a 30% nosedive. This development shows the decrease of imports in the country and hence the reduction of goods imported and being promoted in the domestic market for consumption in the coming months. But heating oil played an important role in this dramatic reduction, of which the total special tax was received last year by the state and now is being received decreased.

Even the revenue from VAT, which fared better than the targets of the budget (because of the taxes for lawyers, engineers, etc.) fails to fill the black hole as to the annual target to be reached in the first two months.

This data actually confirms the prediction of the updated memorandum, which is requesting additional measures that amount to 1,8 billion this year.