Increased use of card payments and new digital enforcement tools have generated an extra €2 billion in revenue for Greece's Finance Ministry in 2024, significantly aiding the country's efforts to combat tax evasion.
Data from Greek banks reveal a 14% increase in payment card transactions this year, totaling 2.5 billion operations.
The value of these transactions reached €112 billion, a 9% rise from €102 billion in 2023, indicating a move away from cash transactions, which have historically made it easier to conceal income.
Finance Ministry officials attribute the surge to both consumer behavior and technological advancements, particularly the full integration of cash registers with point-of-sale (POS) systems.
This integration allows authorities to monitor sales in real time and identify unreported income.
"This surge is not just a number; it’s a transformation," a senior Finance Ministry official stated. "The digital trail is squeezing out tax evasion and strengthening state revenue."
Debit cards accounted for the majority of the increase, rising to 2.3 billion transactions in 2024 from 2 billion the previous year.
Credit card usage also saw a 10% increase to 186 million transactions.
Notably, the use of cards for smaller, everyday purchases has also risen, suggesting a decline in informal cash transactions.
While the total spending per card increased by 10% to €5,468, the average transaction amount decreased by nearly 4% to €44. This decrease indicates that consumers are using cards more frequently for lower-value items where cash was traditionally used and receipts were often not issued.
The Finance Ministry highlighted significant year-on-year increases in card-based turnover in sectors historically prone to tax evasion, including car washes (up 614%), childcare services (up 433%), legal services (up 299%), taxis (up 196%), and jewelry/watch repair shops (up 348%).
Doctors and dentists also reported notable increases in card payments, up 10% and 21% respectively. Restaurants, a large cash-heavy sector, saw card transactions rise by 12.5% to €6.6 billion.
The rise in traceable payments is crucial for the government as it aims to meet European Union fiscal targets, expand social programs, and avoid introducing new taxes. Analysts have long identified tax evasion as a weakness in Greek economic policy, particularly following the country’s debt crisis.
The center-right government under Prime Minister Kyriakos Mitsotakis has emphasized modernizing tax collection as essential for boosting investor confidence and sustaining economic growth.
Opposition parties have called for a fairer distribution of tax burdens and increased support for low-income households, cautioning against digital enforcement tools disproportionately affecting the economically vulnerable.
Despite these concerns, the Finance Ministry is expected to continue its push for digital transactions, anticipating even greater gains in transparency and revenue in 2025 as the trend of increased card usage continues.