A new tax regime for asset transfers from parents to their children - which will be finalised after completion of a so-called "social dialogue" over proposed changes to the country's tax system -- is foreseen in an amendment tabled in Parliament by the finance ministry late Thursday evening. The same amendment also envisages higher taxes on cigarettes and alcohol. The late-night amendment stipulates that tax on gifts or parental asset transfers will be calculated under an existing status but on temporary basis. Final settlement will be made under a new law, following deliberations between the government and so-called "social partners".
A finance ministry statement, issued on Friday, referred to the current PASOK government's policy statement as well as comments by the prime minister - on Dec. 13 -- advocating a reinstitution of inheritance, gift and parental asset transfer taxes. The ministry press release also opined that the measure was fair.
Under the amendment, tabled in Parliament, the government will raise the special consumption tax on cigarettes from 57.5 pct to 70 pct and on alcohol by 20 pct, a move aimed at reaching the average tax rates prevailing in the EU. The new taxes will be valid from Jan. 12 and Jan. 8, respectively.
The ministry said it estimates that the measures will raise an additional 930 million euros annually from tobacco products, and around 70 million euros from alcohol.
08.01.2010
