Greek taxi drivers reluctantly move towards tax compliance

Giorgos Arvanitis, a seasoned taxi driver in Greece, is facing a new challenge as he reluctantly transitions to accepting electronic payments in his cab. This change is part of Greece’s efforts to combat widespread tax evasion by requiring taxis and outdoor market stalls to accept card payments from customers.

At 75 years old, Arvanitis is hesitant to embrace this new technology, citing his age and lack of digital proficiency. However, with pressure from Germany and other eurozone partners, Greece is cracking down on undeclared business transactions and its large cash economy.

The Independent Authority for Public Revenue in Greece is implementing real-time monitoring of electronic payments to ensure that no transactions go unrecorded. Despite progress in reducing VAT gaps from uncollected transactions, Greece still lags behind the EU average.

Finance minister Kostis Hatzidakis emphasizes the importance of increasing digital transactions to combat tax evasion and attract investment to Greece. The country has made significant strides in promoting card usage, with card transactions now comprising 39% of all transactions.

While the shift to electronic payments may be challenging for some, it is seen as a necessary step towards modernizing Greece’s economy and improving transparency. With steep fines for non-compliance and the risk of losing EU recovery funds, businesses are adapting to the new regulations.

As Greece continues its fight against tax evasion, the implementation of interconnected systems and stricter regulations aim to further reduce delinquency. Despite some sectors still being excluded from the measures, the government is determined to create a more transparent and compliant business environment.

For Arvanitis and other taxi drivers, accepting card payments represents a significant change in how they operate and report their income. While the transition may be daunting, it is a crucial step towards a more accountable and modern economy in Greece.