kathimerini.gr
Greece's VAT Gap Falls 53% in 2022
Greece's VAT gap fell 53% from 2017 to 2022 (29.1% to 13.7%), reaching €2.95 billion, due to increased electronic transactions and government initiatives; this places Greece 23rd in the EU, but the government projects further reductions.
- How does Greece's 2022 VAT gap performance compare to other EU countries, and what are the underlying causes for the remaining discrepancy?
- The reduction in Greece's VAT gap is linked to measures implemented in 2022 to increase digitalization of transactions. The 13.7% gap in 2022 represents €2.95 billion in uncollected revenue, compared to €18.621 billion collected. This improvement places Greece 23rd among EU countries, although it has risen from the last place in 2018.
- What specific measures contributed to the significant reduction in Greece's VAT gap in 2022, and what are the immediate financial implications?
- In 2022, Greece's VAT gap—the difference between expected and actual revenue—decreased to 13.7% from 29.1% in 2017, a 53% reduction. This improvement resulted from increased electronic transactions, digital records, and interconnected cash registers and POS systems, curbing tax evasion.
- What are the long-term implications of Greece's VAT gap reduction efforts, and what are the potential economic and social consequences of achieving a zero VAT gap?
- Despite the progress, Greece's VAT gap remains significant. While the government projects further reductions, reaching below 10% and potentially generating an additional €2 billion in revenue by 2026, challenges remain in closing the gap completely and matching the EU average. The 2022 data indicate that eliminating the VAT gap would require eliminating existing tax exemptions.
Cognitive Concepts
Framing Bias
The article frames the reduction in the VAT gap as a significant achievement, highlighting the positive aspects and downplaying potential shortcomings. The headline (not provided, but inferred from the text) likely emphasizes the decrease in the gap. The repeated use of positive language such as "significant improvement" and quotes from the Minister of Economy further reinforce this framing. While the article mentions Greece's ranking within the EU, it does not dwell on this aspect which could provide a more balanced perspective.
Language Bias
The article uses language that portrays the reduction in the VAT gap in a positive light. Terms like "significant reduction," "positive results," and "improvement" are frequently used. While this is not necessarily biased, it could be perceived as promotional rather than purely objective reporting. The use of the phrase "prayers and magic potions" by the minister is highly subjective and inappropriate for a neutral report.
Bias by Omission
The analysis focuses heavily on the reduction of VAT gap in Greece and its comparison to other EU countries. However, it omits discussion of potential contributing factors beyond the mentioned electronic transactions and measures. For instance, the article doesn't explore the role of economic growth or changes in consumption patterns. While acknowledging space constraints is important, including a brief mention of these other potential factors would provide a more comprehensive understanding.
False Dichotomy
The article presents a somewhat false dichotomy by implying that the only way to eliminate the VAT gap is by eliminating tax exemptions. This ignores the possibility of other solutions, such as stricter enforcement or improved tax collection mechanisms. The implication that a zero VAT gap is the only desirable outcome, overlooking the benefits of tax exemptions, is an oversimplification of the issue.
Sustainable Development Goals
The reduction in VAT gap in Greece through measures like increased electronic transactions and digitalization contributes to reduced inequality by ensuring fairer tax collection and potentially leading to increased public resources for social programs. This is because a smaller VAT gap means more revenue for the government, which can then be used to fund social programs and reduce economic disparities.