Speaking at the 7th OT Forum, and referring to the calculation of interest on loans falling under the Katseli law, Stournaras said: ‘It is not a clear decision. At the very least, it is open to many interpretations. So we need to see exactly how this problem will be resolved, because at the moment some read it one way and others read it another’ (ed. meaning borrowers on one side and banks and servicers on the other). ‘This issue must be resolved.’
Turning to tax exemptions, Stournaras proposed a ‘review of the framework’. ‘The Bank of Greece has raised the issue of the many tax exemptions. I repeat, we are not saying they should be abolished; after all, it is not our job to propose to the government matters that are its own concern, such as taxation. But what we are saying is: let it look at them again. There are many of them now. Are most of them useful? Could they be better targeted?’ he said.
‘And I see clearly that both the Organisation for Economic Cooperation and Development and the International Monetary Fund have recently raised the issue of reviewing the many tax exemptions. Perhaps this will do some good, namely finding fiscal space for those who really need it,’ he added.
On indirect taxes, he argued that ‘as tax evasion is cracked down on, opportunities are created to reduce tax rates’.
Asked about the possibility of difficulty in forming a government after the next election, the Governor of the Bank of Greece said that ‘if such a possibility arises, it will harm the economy’.
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