ATHENS – The cost of the Radical Left SYRIZA’s reneging on anti-austerity promises will surpass 23.296 billion euros ($26.22 billion) in new taxes.
That’s the combination of an avalanche of taxes both direct and indirect and a complete reversal of what Prime Minister Alexis Tsipras promised before caving in to demands from international lenders.
The figure is higher by 2.518 billion euros ($2.84 billion) than the corresponding obligations faced by Greek taxpayers and households in 2015 as the cost of austerity keeps mounting on beleaguered citizens.
Failure to meet revenue targets, and by extension fiscal targets in the form of primary budget surpluses as a percentage of Gross Domestic Product (GDP,) will mean activation of an automatic spending cuts mechanism, a politically damaging prospect for the current government, the business newspaper Naftemporiki said.
The mechanism, dubbed the “cutter,” would trigger the cuts in state spending in case fiscal targets are missed, with state sector wages and pensions again on the chopping block although Tsipras said they were sacrosanct.
Greece’s tax bureau will need to collect 4.6 billion euros ($5.18 billion) on average, every month until the end of 2017 from wage-earners, pensioners, self-employed professionals entrepreneurs and business although the tax hikes have provided new incentive to cheat.