The Greek parliament will be called to approve approve key creditor demands in order to start negotiations to access a new international bailout of up to 86 billion euros.
The bill, named “Emergency Measures for the Negotiation and Agreement With the European Stability Mechanism (ESM)” includes measures to streamline value-added taxes, broaden the tax base to increase revenue and curbs pension costs and has two distinct chapters:
Chapter A (Article 1) contains the text of the Euro Summit Statement on Greece, which the Greek Parliament is called upon to approve.
Chapter B (Articles 2-3) deals with taxation and the independence of Greece's statistics office (ELSTAT) is maintained.
Article 2 enumerates in detail the goods which are exempted from the 23% Value Added Tax (VAT) rate. There are two lower rates, 13% and 6%. Electricity bills, hotels and many prosecced foods are taxed under the 13% rate while medicines and books at the 6% rate.
Corporation tax has two rates, 29% for companies with income up to €50,000 and 33% for those with income above that threshold.
In islands with a population of over 4,100 inhabitants, cash transactions are limited to €70.
There are also clauses concerning tax evasions, taxation of “luxury items” such as expensive cars, private jet planes, boats, and swimming pools; and hikes in the “special solidarity contribution” notably for annual incomes exceeding €30,000.
Article 3 details all necessary steps to be taken to ensure the independence of Greece's statistics office (ELSTAT) is maintained
Chapter C (Articles 4-6) deals with pensions and social security issues.
Article 4 abolishes, in stages from July 1, 2015, to the end of 2022, all early retirement , with the exception of “heavy and arduous professions” and mothers with incapacitated children. All others will retire either at 67 or 62, if they have 40 years of employment by then.
Article 5 merges all supplementary pension funds into one freezes state funding of pension funds, and increase contribution for medical care to 6%.