Final solution for VAT taxes

A sudden embroilment appeared in the meetings between troika and Stournara for the tranches of 2.8 billion euros in March and the following of 6 billion euros. Troika gives a bad grade to the ministry for the poor performance in combating tax evasion and delaying repayments of State debts.

At yesterday's meeting, Stournaras failed to convince them that there is real progress on the changes to the tax collection mechanism, leading auditors to leave disappointed, saying they would block the regulations and tax changes promoted by the Finance ministry.

In the coming days Samaras will be called to give a final solution to the problems that arise as the team of auditors will extend their stay in Greece until they receive sufficient commitments regarding the Greek government's intentions.

The issues that rose at yesterday's meeting are:

-       the autonomisation of the tax collection mechanism from its political control

-       the checks the ministry had committed to do but has not done yet

-       the gaping hole in the budget implementation that remains a concern, despite evidence that tax revenues will be increased by 15% in February, not due to the work of tax offices, but to citizens being             alarmed by the threats of foreclosures and prosecutions, even for small amounts

-       the new settlement of debts to the tax offices planned by the government. Troika pledged to help in its creation, suggesting that soon it will be completed. However, it will be pressing for a quick collection of the owed amounts, without allowing enough time to create new ones

-       the acceleration of the repayment of State debts to private individuals. Although lenders prioritize the repayment of State debts, the Greek government has only just began putting in order the debts it must pay, setting relevant rules, but at a very low pace..