The tax rate for farmers in Greece, currently set at 13%, will not be increased as part of the government’s latest economic reform bill

The Greek government has passed a new economic reform bill as part of its deal to remain within the Eurozone but has resisted intense pressure from creditors and omitted an increase in the tax rate for farmers.

Farmers in Greece pay 13% income tax – far below the general rate of 25% – and also receive rebates on fuel and fertiliser expenses. However, it is believed tens of thousands of Greeks living in rural areas, but not making a living from agriculture, claim to be farmers to benefit from the special tax status it affords.

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Greece’s creditors see the special tax rate afforded to farmers as a major loop hole in the tax system and had sought a restructuring of the system in the latest economic reform bill in order to eliminate further abuses.

However, after an outcry from farming representatives, which said the reforms would effectively lead to a quadrupling of their tax bill, the Syriza-led government of Alexis Tsipras decided to leave out the changes in the tax system enjoyed by Greek farmers for decades.