PM’s tax announcements: Who will receive a double heating allowance, for whom and when the trade tax “freezes”

With the price of natural gas rallying, the government is widening support measures to keep households warm in the difficult winter ahead, while with the aim of reducing natural gas consumption it is giving a double heating allowance as an incentive for citizens to stop using natural gas for their heating and return to heating oil.

On the taxation front, the Prime Minister from the Thessaloniki International Fair platform announced the definitive abolition of the solidarity levy for all taxpayers from January 1, 2023, the extension for another six months of the reduced VAT rates on coffee, non-alcoholic beverages, transportation, cinema tickets , a new two-year suspension of the 24% VAT on new constructions and a temporary "freeze" of the trade fee for businesses and professionals making new hires.

In particular, the TIF tax package includes:

1. Heating allowance of 300 million euros to 1.3 million households. During the 2021-2022 season, 174 million euros were allocated from the state budget for heating allowances. In the new winter season, the budget will distribute 300 million euros. This means that the amount of the allowance that the beneficiaries will receive will be increased, it will move above the 100 - 750 euros that was last year, while at the same time the criteria (income and assets) are being expanded to support 1.3 million households . Last year, beneficiaries of the heating allowance were those who had an annual total family income, regardless of its source of origin, real and assumed, up to 14,000 euros for a single person and 20,000 euros for a married person without children, which was increased by 3,000 euros for each child.

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