Greece Seeks Bailout Loan Similar to EU Commission Plan

The Greek government’s proposals to creditors for a three-year bailout loan call for increases in sales and corporate taxes and pension savings of 0.25%-0.5% of GDP in 2015 and 1% of GDP in 2016, according to a Greek government official. 1)Greece proposes restructuring of its debt and a package of growth measures of EU35b Greece proposes corporate tax increase to 28% from 26%. 2)Proposes to adopt new VAT legislation as of July 1 to unify rates at a standard 23% rate, which will include restaurants and catering and a reduced 13% rate for basic food, energy, and hotels; also calls for super reduced rate of 6% for pharmaceuticals, books and theatre while gradually eliminating tax discounts on islands. 3)Proposals based on primary budget surplus targets of 1%, 2%, 3% and 3.5% from 2015 through 2018.