Ministry to reduce limit for cash transactions

The Finance Ministry is considering the reduction of the maximum level of permitted cash transactions, as efforts to contain tax evasion continue.

Sources say that the ministry and the Independent Authority for Public Revenue have examined a number of measures in their bid to reduce undeclared incomes, as overtaxation and high social security contributions have led to an increase in the phenomenon.

One of the measures under consideration is the reduction of the 500-euro limit on cash transactions to 400 or even 300 euros. This way cards and e-banking transactions should increase, hopefully bolstering the ministry’s revenues too.

Still, this will only marginally help contain tax evasion, observers note, because enterprises or self-employed professionals that do not issue receipts will continue the practice, while offering their customers a tax-free discount.