Thirteenth austerity package (Greece)
| Thirteenth austerity package - May 2016 measures | |
|---|---|
 | |
| Hellenic Republic | |
| Territorial extent | Greece |
| Enacted by | Hellenic Parliament |
| Date passed |
1. 8 May 2016 (For: 153; Against: 144) 2. 22 May 2016 (For: 153; Against: 145) |
| Introduced by | Government of Greece |
| Status: In force | |
The thirteenth austerity package is a part of the demanding measures that agreed between Greek government and IMF, EU, ECM for the 86-billion-euro bailout, to last summer.[1] The package was voted upon in two rounds. The first rounds of measures passed, on Sunday 8 May, by 153 votes in favour to 144 against,[2] amid demonstrations.[3]
It includes 5.4 billion euros in pension cuts and taxes reforms. The measures aim to attain savings to meet an agreed 3.5 percent budget surplus target before interest payments in 2018.[4]
The first set of measures
The first rounds of measures mostly comprised pension reform to the tune of 3.6 billions. The measures include:[4][3]
- Cuts in new pensions.
- Reduction the higher pensions
- Increase the insurance contributions
The second set of measures
The second round of measures comprise new taxes to the tune of 1.8 billions and the creation of a contingency spending cuts mechanism (cutter mechanism). The measures voted on 22 May 2016 by 153 votes in favour and 145 votes against.[5] The tax reform includes:[6][7]
- Increase VAT to 24 percent
- Higher taxes in all fuels
- A range of new taxes, such as coffee and electronic cigarettes.
- increase in excise taxes on tobacco and ENFIA tax.
- Tax on tourists staying in hotels from 2 stars and up.
- Levy tax in TV subscriptions, landlines and internet broadband connections
See also
- First austerity package (Greece)
- Second austerity package (Greece)
- Third austerity package (Greece)
- Fourth austerity package (Greece)
- Sixth austerity package (Greece)
- Seventh austerity package (Greece)
- Eighth austerity package (Greece)
- Ninth austerity package (Greece)
- Tenth austerity package (Greece)
- Eleventh austerity package (Greece)
- Twelfth austerity package (Greece)
References
- ↑ "Greek parliament prepares to vote on new austerity package". Deutsche Welle. May 5, 2016.
- ↑ "Greece approves pension and income tax reforms". ft.com. Retrieved 13 May 2016.
- 1 2 "Greek parliament begins debate on austerity measures amid wave of strikes". ft.com. Retrieved 13 May 2016.
- 1 2 "Greece passes painful fiscal reforms". reuters.com. Retrieved 13 May 2016.
- ↑ "Tax, privatization fund bill passes in parliament by 3 votes; austerity package now complete". naftemporiki.gr. Retrieved 23 May 2016.
- ↑ "1,8 δισ. το νέο πακέτο φορολογικών μέτρων". kathimerini.gr. Retrieved 20 May 2016.
- ↑ "Tax hikes threaten to brew up a storm for Greece's coffee drinkers". theguardian.com. Retrieved 20 May 2016.