Hatzitheodosiou: Attica's businesses the "stepchildren" of the TIF

The president of the EEA speaks of children and stepchildren. As he points out, the announcements of the economic measures create businesses of two speeds. Those of Attica are the losers.

Hatzitheodosiou: Atticas businesses the stepchildren of the TIF

This article is an AI translation of an original piece published in Greek. Read original

 

Criticism of the government for the different treatment of Attica's small and medium-sized enterprises regarding the abolition of the business tax is voiced by the president of the Athens Chamber of Tradesmen, Giorgos Hatzitheodosiou.

As noted, the announcements of the economic measures create businesses of two speeds. The business tax is abolished in 2027 for the regions, Thessaloniki and the islands of Attica. By contrast, for the remaining businesses of Attica only a 50% reduction is provided in 2028 and full abolition in 2029.

The chamber president stresses that the geographic distinction is arbitrary, as all small and medium-sized units face the same problems of high prices, increased operating costs and lack of liquidity. At the same time, he underlines that this choice was made so that public revenues would not be lost immediately.

In addition, concern is expressed about the gradual reduction of the tax prepayment to 50%, which is scheduled for 2034. According to Mr. Hatzitheodosiou, this delay poses risks to the viability of thousands of professionals, who are called upon to withstand market pressures until then.

What follows is the full statement by the president of the EEA:

"One of the conclusions we reached after the announcements of the long-awaited measures -and without admitting any dispute whatsoever- is that for the government there are the "children" and the "stepchildren".

How do we understand this? Why, from the fact of the different treatment that businesses in the Region receive compared with those in Attica regarding the business tax.

What did the government say with the specification of the measures?  "The business tax is abolished:

From 2027: for businesses headquartered in the Region and in Thessaloniki, as well as on the islands of the Islands Regional Unit of Attica.

From 2028: the business tax in Attica is reduced by 50%.

From 2029: the business tax is abolished completely and nationwide".

That is, a memorandum-era burden, a "levy" to speak plainly, is abolished immediately for all businesses in the country, except for those headquartered in Attica.

Really, how can this different treatment of small and medium-sized enterprises be explained for an issue that concerns them all the same?

Does the government perhaps believe that businesses in Attica are doing better economically and is making this arbitrary distinction?

Are not all businesses boiling in the same pot? Are they not all threatened by prolonged high prices, the energy crisis, high operating costs, lack of liquidity? What is the purpose of this irrational differentiation?

Unless they judged that the revenues from the imposition of the business tax should not be lost immediately and chose a geographic distinction for the gradual abolition of the "levy", indeed over a period of three years.

If the latter is true, then the government was wrong to advertise that the TIF measures would be for supporting the middle class and small and medium-sized entrepreneurship.

And they should be particularly concerned by this development, as similar complaints have also been expressed by officials of the ruling party.

Because apart from the gradual abolition of the business tax for businesses in Attica, there is also the "foul" of the gradual reduction of the tax prepayment, which is expected to reach 50% in the distant 2034. Are the economic staff so certain that small and medium-sized enterprises will manage to face the challenges of the times and endure until then? Might thousands of "closures" have intervened?

I know well that there will hardly be answers from the government's side. But let them not claim that with the measures announced at the TIF there will be solutions to the problems that have plagued small and medium-sized enterprises and professionals for years".  

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