The European Commission, the OECD, the IMF, and the Bank of Greece recommend reviewing tax exemptions and abolishing those that lack a social purpose, placing their scope, cost, and effectiveness at the center of the public debate on tax policy, according to a report by Kathimerini.
In Greece’s case, their scale and complexity place the country among those with the highest number of tax exemptions for both individuals and businesses, according to a European Commission report. The report notes that Greece lacks a permanent and systematic mechanism for evaluating tax exemptions and recommends establishing one to ensure continuous monitoring of both costs and effectiveness.
International organizations and institutional bodies have also warned that tax expenditures should be reassessed in terms of transparency, efficiency, and their contribution to economic development.
Income tax exemptions for individuals and businesses, capital taxation reliefs, VAT reductions, and excise tax exemptions are among the measures included in the system.
According to the latest data, tax exemptions reached 1,236 in 2024, costing €22.88 billion—€4.06 billion more than in 2023—and accounting for 30.9% of total tax revenues.
The IMF, for its part, argues that ineffective and regressive tax expenditures, such as reduced VAT rates or exemptions that disproportionately benefit higher-income groups, should be gradually phased out.
The Bank of Greece highlights the need for a review based on both developmental impact and social targeting, as part of a broader package of reforms aimed at improving tax compliance.
Source: Καθημερινή
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