The provisions of the heating allowance plan

The first of the three tax bills being drafted by the government and which will provide for regulations and the abolition of the Code of Books and Records, is expected to be ready by mid-October. The government will also attempt to bring a penalty sheet with decreased tax fines.

According to information, the heating allowance plan is expected to be finalized next Wednesday, having been submitted for consultation with the political parties.

The plan provides for the equalization of excise taxes on heating oil and diesel that will reach 80% of the current rate of excise duty on diesel. This means that from October both will be sold at 1.4 euros per liter.

The heating allowance, however, is expected to be allocated to the beneficiaries in two installments, the first of which will come on October 15. The payment will be in cash and not through the accounts of the PPC as was the earlier project. The total amount of this expenditure has been estimated at 120 to 150 million euros, but has not been provided for in this year's budget.

The allowance is designed to be given under four criteria: social, geographical, income and depending on the area of residence. The beneficiaries will be low wage earners, the unemployed and other people with very low incomes who live in areas of the country in which the average temperature drops too low. An additional condition will be living in a house with a floor area of ​​less than a specified limit, somewhere around 100 square meters.

Changes in real estate

The second tax bill will provide for changes in property taxation with a uniform tax. Charges are very likely to occur here if the tax-free limit is set lower than the current level of 200,000 euros.

Information indicates that there will be different tax rates and scales for buildings than for land and plots. It may also include the home ownership tax proposed by the European Commission.

The third bill that will be brought to parliament in November or December will include changes in the taxation of incomes of natural and legal persons. Although it is still early, the changes will take effect from 2013 and some provide for the institutionalization of a new tax scale with fewer levels - which will burden mid-incomes - and elimination of tax exemptions for incomes over 30,000 euros (if it adopts the same income criteria with social benefits).

The government is also considering the partial decrease of VAT tax or even the consolidation of rates at 18% or 19%, which will mostly burden consumer goods.