Extra 33% tax on refineries, to support pensioners
The National Economy and Finance Ministry announced on Thursday the imposition of a temporary solidarity contribution of 33% on the excess profits of refining companies based on their results for tax year 2023.
At the same time, the ministry also announced the switch to permanent of the reduced value-added tax (VAT) rates on taxis and on the service of coffee delivery (take away & home delivery).
The levy on refineries practically extends the measure introduced for their excess profits in 2022.
The revenue will be used mainly for the financial support of pensioners in December (who due to a personal difference do not benefit from the new increase in pensions from January 2025), as well as for strengthening the credits of the National Public Investments Program.
Speaking on Real FM on Thursday morning Prime Minister Kyriakos Mitsotakis explained that the takings from the levy “will support the budget and head to the vulnerable, such as pensioners, and especially pensioners who did not see an increase due to the personal difference. It was a pre-election commitment of ours, which will be financed by this extraordinary tax,” the PM said, estimating that the revenue from this tax will amount to approximately 300 million euros.
As of July 1, the reduced VAT rate for taxis becomes permanent (from 24% to 13%), with an estimated annual fiscal cost of €45 million.
In addition, the reduced VAT rate (13%) remains on coffee, cocoa, tea and concerning deliveries of goods (take away and delivery), with an estimated fiscal cost of €65 million per year; the rate reverts to 24% only for served goods, in harmony with the remaining non-alcoholic beverages, for an estimated revenue of €43 million per year.
