Androulakis: The gov't used the Greek people's troubles to produce high revenues
The same people who have condemned the country to a decline, who led Greece to bankruptcy and memorandums, "are trying to smear us as populists, unable to produce results for the country," PASOK-Movement for Change (KINAL) leader Nikos Androulakis told Skai TV on Saturday morning.
Androulakis kept the tone down for PASOK's upgrade to main opposition during the interview, and spoke of more and more substantial work. "Obviously our role is institutionally upgraded, but we did our job and will continue to do so. And our duty is to be reliable, serious, and follow a program. To propose a progressive solution to any problem in order for people to see in choosing PASOK a progressive government that will improve their living standards," he said.
The party is united and has renewed its political staff, and has a large political and ethical capital it will not squander, he said, while he outlined the party's proposals for pensioners, and said that the VAT should be lowered. "In 2019, VAT held a 34% share in the budget's revenues. Instead of dropping and reaching the European median, it VAT rose to 38%! If, therefore, we add VAT to the Special Consumption Tax, the Greek people are paying for the budget's revenues with high prices. The actural revenues are very low, and result from the restriction of tax evasion and from the use of cards for payments. The greatest percentage comes from inflation and high prices. Therefore, the government used as tools the troubles of the Greek people to raise its revenues. And this is obvious from another fact: in Europe, the ration of direct and indirect taxes are on average one on one. In Greece, for every euro of direct taxes we have 1.8 in indirect ones," the PASOK-KINAL leader said.
Androulakis proposed a gradual reduction in VAT over three years, eventually reducing VAT to 2%. "If revenues remain stable, then we reduce it further. In other words, set up social incentives, motivating Greek people to 'collect receipts, and at the end you will win, because we will be gradually reducing VAT every three years." That way, he said, Greece will reach the European average. He also criticized the government for allowing oligopolies in the market, particularly in the sectors of energy, banks, food retail, and health.