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European finance ministers are to hold lots of meetings in the coming days as the country continues to suffer from cash problems over the debt repayment to IMF and ECB. Greece has paid € 0.3 billion to IMF from a total due of € 1.6 billion in March.
Tax problem -
- Greece continues to suffer with tax revenue to this date, even after implementation of 4 years of Reform. Latest data points at continued Tax avoidance runs rampant across Greek Society.
- Tax arrears in Greece run high at € 76 billion as per latest data. It has increased from € 29.5 billion in 2009 to this level as of February 2015.
- Government entities and bankrupt companies account for 9% and 17% respectively.
- 200,000 SMEs are due to pay tax in tune of € 3000 -5000.
- 3.7 million individuals owe up to € 1.6 billion.
- VAT (Value added tax) is the main area, where the tax avoidance and non-reporting is extremely high.
- Tax problem is getting exacerbated over smuggling and illegal transfer of goods across board.
- Cigarettes where government earns about 80% of the maximum retail price are exported illegally to the tune of 20-25%.
Progressive reforms under this section, if included over the recent agreement situation in Greece can go for a turn.
