The impact of taxation on economic development and growth: The case of Greece

Abstract

This article provides a comprehensive analysis of the Greek tax system, focusing both on
the fundamental principles and guidelines governing the country’s tax policy, and on its
relationship with economic development and social justice. In this context, the main
features of the Greek tax system are presented, with reference to the main indirect and
direct taxes and their respective rates.
Specifically, the personal and legal income tax, the tax rate on business profits, the value
added tax (VAT), as well as other indirect taxes are analyzed, in order to clarify the
structure and operation of the Greek tax system. In addition, an assessment is made of
the challenges faced by the Greek tax administration, such as widespread tax evasion and
the need for reforms.
Through this approach, the aim is to identify the advantages and limitations inherent in
the current Greek tax framework. Based on this analysis, specific proposals are
formulated for the improvement of the Greek tax system, emphasizing the enhancement
of efficiency and the promotion of social justice. Specifically, the reduction of indirect
taxes and the enhancement of direct taxation are proposed, incorporating social and
income criteria to enhance social equality and sustainable development.
JEL Classifications: A19, H20, H21, H24, K34
Keywords: Taxes, development, social justice, efficiency