(MENAFN) EU tax commissioner, Algirdas Semeta, stated that Greece needs to revamp its tax system to stop losing around 5 percent of its gross domestic product (GDP) annually, reported Reuters.
Semeta said that last year, more than a quarter of the country's annual output was lost due to tax evasion, the highest rate in the European Union (EU).
He added that out of the USD69.75 billion in overdue taxes owed to the state; only 15 to 20 percent could be collected, according to the commission's estimates.
The commissioner said that most of the debt-ridden country's small business owners under-report sales and pay lower value-added tax, with the self-employed, including plumbers and electricians, regularly getting paid in cash, avoiding receipts.
The Greek government plans to scrap several tax exemptions and lift tax rates on property, companies and households with above-average income in order to increase state revenue, moreover, it plans to impose a tax on capital gains on stocks traded on the Athens stock exchange.
According to the government, the steps are forecasted to boost tax revenues by nearly USD3.29 billion in 2013-2014.
It is worth noting that last week; the euro region consented to provide USD64 billion in long-delayed aid to Athens.
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