2 minutesNo longer merely an old-fashioned cash collection and compliance mechanism, taxation has become a modern tool for overcoming challenges and planning ahead for growth and development.
Case in point, in July 2021, the environmental crisis led the European Commission to introduce its “Fit for 55” climate package — aiming to achieve a reduction of at least 55% in CO2 emissions by 2030 and to be the first climate-neutral continent by 2050 — including a proposal for the revision of the EU’s Energy Taxation Directive. The proposal introduces new measures and structure of tax rates, based on energy content and environmental performance, and will have major impact on competition, energy cost, consumption profiles, and the adoption of cleaner/sustainable energy technologies. Greece, being on the border of the EU, will be less competitive against neighboring countries not bound by such restrictions, therefore further sufficient measures and transition preparation time need to be considered. The road to go green will be neither short nor free. To meet the reform’s goals, sufficient funding for the relevant activities needs to be secured to also encourage initiatives towards growth and change of behavior.
Furthermore, digitalization is fundamentally changing the way we do business and live. The impact in taxation is of paramount importance; the exchange of information globally, as well as the introduction of e-books and e-invoicing (subsequently e-audits) nationally, are key drivers for transitioning into a more transparent and efficient tax system, increasing speed and reducing costs.
And in all this, taxation must be a front-line policy instrument, playing a key role in the ongoing transition.
The article was first published in Business Partners, the Bimonthly Magazine of the AMERICAN-HELLENIC CHAMBER OF COMMERCE (For more information visit the following link)