The 2020 tax package presents dilemma for gov’t and creditors

A package of tax measures for 2020, which includes the reduction of the tax-free ceiling and a series of rate reductions, will shift the burden of 2 billion euros from about 500,000 taxpayers with a personal income of 22,000 euros or more per year to about 4 million people with takings between 7,000 and 22,000 euros/year from salaries, pensions or agricultural activity.

That means that "poorer" salaried workers and pensioners will shoulder additional taxes of up to 450 euros each, while "richer" taxpayers will save more than 700 euros in income tax and the solidarity levy.

The impact of the 2020 tax package is at the focus of political parties, as the decision for its activation will need to be taken, at the latest, by November, when the 2020 budget will have to be tabled in Parliament. If general elections are held in October, as the government claims, then the issue...