Greek government due to submit its draft budget plan for 2017

Greece’s government will submit today its draft budget plan for 2017 to parliament. The first draft of the 2017 budget will contain new taxes adding up to an anticipated amount of EUR 1.55bn.

New taxes include the increase in the special consumption tax on heating oil (which will apply from mid-October but will also have an impact on 2017 revenues), the higher special consumption rates on other forms of fuel (to apply from January), and the new taxes on coffee, fixed-line telephony and electronic cigarettes.

According to various sources, the draft budget will provide for a primary surplus above the target of 1.75% of GDP dictated by the bailout agreement. The budget’s target will be close to 2% of GDP with the help of the additional taxes as well as the extra revenues expected from the increase in social security contributions (EUR 135mn).

Source: capital.gr