IMF insists on a lower income tax threshold

The International Monetary Fund is pressing for a reduction of the income tax threshold in Greece to 5,000 euros per year, while the head of the Eurogroup revealed on Thursday that some additional short-term measures for easing Greece's debt in 2018 are ready. If the IMF is satisfied with the debt-easing measures it will likely signal its entry into the bailout program, possibly while insisting on its position on the income tax threshold.

The IMF considers that the government's tax reforms have not dealt with the very generous tax exemptions in Greece that allow more than half of salary workers to be exempt from paying income tax, while in the eurozone the average rate of exemption stands at 8 percent.

The Fund's pressure has generated concern in the government in Athens, which fears the European creditors may adopt its tough line on the tax threshold. After all, both...