The Greek government is responding to the challenges for a strong, sustainable and competitive economy, Finance Minister Christos Staikouras said on Wednesday.
Speaking in Parliament, the Finance minister noted that despite the adverse timing, with higher borrowing costs, geopolitical tensions, health and energy crisis and a big increase in inflation, Greece continues receiving a vote of confidence, with credit rating upgrades, as a result of a reform effort, good fiscal performance, efficient bond issuance strategy and adequate cash reserves by the government.
Referring to a draft legislation debated in Parliament, Staikouras said it was another decisive step in a wider plan for the transformation of the Greek economy. It is a real reform, included in the National Plan of the Recovery and Resilience Fund, designed to boost healthy enterpreunership, achieving sustainable growth, create new job positions and boost social cohesion.
He noted that the new legislation was included in a long list of tax policy measures taken by the government towards encouraging and boosting enterpreunership, through tax and social insurance cuts and introducing incentives for the development start-ups, promoting R&D, attracting investors and foreign citizens.
Staikouras said the legislation introduces the institution of partnerships between enterprises, improves tax incentives, strengthening agricultural economy and promotes the partnership of natural persons, mainly farmers. The legislation offers a 30% income tax discount for nine years to all corporate entities resulting from the partnerships of personal, very small, small and medium-sized enterprises, a discount raised to 50% for farmers.
This will accompany a government decision to lower corporate tax factor to 22% from 29%.