Tax reform

A representative of Turkey's construction sector has sounded the alarm bell after a steep fall in the value of the Turkish Lira significantly increased costs.

"The construction sector is on the verge of bankruptcy," said Tahir Tellio?lu, the chair of the Assembly of Construction Contractors in the Union of Chambers and Commodity Exchanges of Turkey (TOBB).

The World Bank has recommended to Bulgaria to cut Value Added Vax (VAT) levied on medicines as the tax is too high and poses a heavier burden on the poorer patients, Sega news daily reported on Monday.

The head of the Bulgarian Customs Agency Vanyo Tanov hinted on Friday at the possible existence of price cartel between the petrol stations in the country.

According to Tanov, the price of a liter of petrol including excise duties and VAT was BGN 1.8, so the difference in the final prices found at petrol stations hinted of a cartel.

Romania's political parties on Thursday agreed to cut the VAT rate from 24 to 20 per cent from January 1 next year and agreed a further cut to 19 per cent starting 2017.

The centre-left government of Victor Ponta has championed a package of tax cuts, saying it is needed to boost growth.

Members of Romania's parliament across parties agreed on Thursday to cut Value Added Tax (VAT) to 20% from next year, and to 19% from 2017.

VAT in Romania currently stands at 24%.

Aside from the tax cuts, the government led by Prime Minister Victor Ponta also plans to increase considerably the wages in the public sector from 2016.

Greece and its international lenders (EC, ECB, IMF and ESM) reached the 85-bln-euro bailout agreement to cover the next three years after 23 hours of talks that ran through the night on Tuesday.

After a marathon meeting between the Greek negotiating team and its EU creditors,which lasted for 6 and a half hours and ended after midnight, a list of prior actions to be included in the Memorandum of Understanding (MoU) was reportedly agreed upon.

A much-anticipated “tax safari” has apparently commenced, with Greece’s two top holiday destinations — and suspected VAT tax evasion havens — serving as “hunting grounds” for tax inspectors.

Checks on the stunning island of Santorini turned up three undeclared cash registers, meaning that receipts were bogus.

VAT hikes took effect, on beef, for instance, even before the ink was dry on a law approving the framework package with European creditors, the now infamous “Greekment”.

Greece is a nation that is ageing demographically. A problem facing most developed countries. This fact is compounding the crisis-stricken nation, with more people retiring and less moving into the workforce to make up for the necessary pension funds to cover the retirees.