Chr. Staikouras: Ineffective measure is the reduction of the TFC on fuel

“Greece will have a primary deficit this year as well, ie expenditures will be more than revenues. So those who easily ask for additional support measures, such as the reduction of the Excise Tax on fuel, means that they support the increase of the country’s deficit, increasing “Interest and triple costs, measures that lead to the burden, in the medium term, of households and businesses. That is, to roll into situations that we have recently experienced.”

This was stressed in Parliament by the Minister of Finance, Christos Staikouras, responding to the accusations of the opposition parties, “for insufficient measures to support the government in households and businesses that are severely affected by the energy crisis”, while rejecting as ineffective the measure for reduction of the Excise Tax on the fuels they proposed.

The occasion was the joint meeting of the Committees on Economic Affairs and Institutions & Transparency of the Parliament, the members of which were informed by the Governor of the Independent Public Revenue Authority, George Pitsilis, on the Authority’s report for 2021 and its planning for the coming years.

“The government has shown that it intervenes in a timely and courageous manner to provide financial support, especially to vulnerable social groups. We have shown this in both the pandemic and the energy crisis. “In low incomes”, Mr. Staikouras underlined characteristically and pointed out: “In relation to the energy crisis, Greece gave twice as much money as the European average to support households and businesses”.

Commenting on the proposal to reduce the VAT on fuel, the Minister of Finance said that another measure should be found as compensation, calling on those who support it to clarify whether they also request an increase in ENFIA.

I can easily hear the saying “reduce fuel taxes horizontally” when the Parliamentary Budget Office comes and says that it is wrong to reduce indirect taxes horizontally. says that reducing indirect energy taxes is not the most effective solution to social justice, especially if prices remain high for a long time. “It can help to finance and support the most vulnerable households in a targeted way. That is exactly what Greece is following”, Mr. Staikouras pointed out and added:

“So when a fiscal space is created from the execution of the state budget, we return it to the vulnerable social groups.”

At this point, Mr. Staikouras accused the opposition that “it easily exceeds 371 million euros from the reduced ENFIA”, noting that “it is a permanent measure in favor of the citizens”.

“We could increase ENFIA. Does the opposition want this? Let me hear it. We could therefore increase ENFIA and come back with another policy, to help the citizens, by reducing the fuel tax for two months. “We have chosen a permanent measure to benefit the middle class.”

The Minister of Finance also referred to the country’s exit from the enhanced supervision of creditors, emphasizing that it will return to European normalcy without, however, meaning that it will be outside European rules.

“The exit from the enhanced supervision really seems to be underway in the next period. In two weeks the Eurogroup, together with the European Commission, will decide to exempt from the enhanced supervision regime of Greece. That is, not to be in an extremely suffocating environment in which is located since 2010.

This means that after the lifting of restrictions on the movement of funds, the early repayment of the IMF and now the exit from enhanced supervision, ie after the three interventions of the ND government, our country returns to European normalcy. At the same time, however, it does not mean that Greece will be outside the European framework and rules. Of course, we will have more flexibility through the Recovery Fund, but we will also operate in accordance with European rules “, Mr. Staikouras underlined and concluded:

“The political leadership of the Ministry of Finance has never triumphed. Based on the economic indicators, the data show that we are doing well. We are not where we want to be but we are seeking it. We are all judged by the result.”

For his part, the governor of the Independent Public Revenue Authority (AADE), George Pitsilis, emphasized the elements of the Authority’s actions, talking about important results for the benefit of citizens and businesses.

According to him, the fight against tax evasion and smuggling has been effectively improved, resulting in a significant increase in state revenues and support for the economy.

“In 2021, 170,000 checks were carried out to combat smuggling. For the first time in the history of the country and possibly Europe, 350 million smuggled cigarettes were confiscated, with the amount of tax evasion exceeding 72 million euros,” he said. Pitsilis added: “In a very difficult environment we gave 9 billion euros supporting 750,000 companies”.

Finally, he emphasized the increase of digital customs centers, emphasizing the need to hire 800 executives to enhance the operation and efficiency of AADE.

The parliamentary representative of ND, Costas Markopoulos, described as “an absolute example of populism the ease with which some propose tax cuts without specific proposals as compensation”.

SYRIZA parliamentary representative Tryfon Alexiadis, citing relevant publications, called on the government to respond, “if there are carbine scandals regarding fuel and methodical controls.”

The parliamentary representative of PASOK-KINAL, Haris Kastanidis, characterized “strange the logic of AADE that it did everything well, when behind the lines of the 2021 report, in 22 goals it did not bring the desired results”.

The parliamentary representative of the KKE, Nikos Karathanassopoulos, stressed that “out of the 25 billion euros of uncollectible debts, about 20 billion are owed by large debtors, however the government is chasing small debtors and crumbs and not specific parts of the capital”.

The parliamentary representative of the Hellenic Solution, Vassilis Viliardos, stressed that a realistic plan is needed because no country does well in distributing, through the loans it receives, allowances, when its private debt is constantly increasing.

The parliamentary representative of MeRA25, Kriton Arsenis, expressed his opposition “to the establishment and operation of AADE which, as he said, is an idea of ​​the creditors for the control of the repayment of the public debt and does not aim at serving the public interest”.

SYRIZA MP Pavlos Polakis accused both the government and the AADE that for three years they have been protecting the very rich from their checks and overdue debts and are chasing citizens with low incomes and small debts.

SOURCE: ΑΠΕ-ΜΠΕ