Reduction of the basic tax rate to 9 pct to cost up to 900 mln euros

The government's pledge to reduce the minimum income tax rate from 22 to 9 percent for the first 10,000 euros declared will have a fiscal cost of at least 800-900 million euros per year.

This is a particularly high price tag for one single cut as a result of the large number of taxpayers that stand to benefit, even without any of the other changes to tax rates being planned by New Democracy, which also intends to shave 2-3 percentage points off the other income rates (of 29, 39 and 45 percent).

Under the new rates, salaried workers and pensioners with personal incomes of over 9,000 euros per year will pocket up to 180 euros more, while all self-employed professionals will also benefit without exception, being better off by up to 1,300 euros on an annual basis.

That cost of 800-900 million euros will come on top of some 2 billion euros from the non-reduction of...