Greek PM announces tax cuts ahead of triple polls challenge

Greek Prime Minister Alexis Tsipras on Tuesday announced a swathe of tax cuts and benefits in a bid to boost his party’s ratings ahead of a triple electoral challenge starting this month.

Ahead of European and local elections on May 26, and national elections late in the year, Tsipras announced tax cuts on food and energy “so that Greeks will feel, as fast as possible,...the recovery of the economy”.

In a hastily called press conference, Tsipras said savings and a better-than-expected economic performance would also enable Greece to buy back 3.6 billion euros ($4.03 billion) in “costly” IMF loans.

Another 1.14 billion euros in fiscal overperformance this year will permit a food tax to be cut to 13 percent from 24 percent currently, and an energy tax to be halved from 13 percent to six percent, the prime minister said.

Tsipras is battling to catch up with the main opposition New Democracy conservative party which holds a steady lead in opinion polls.

On Tuesday he said the benefits package should be rewarded with a “confidence vote” at European and local elections later this month.

Tsipras faces an actual confidence vote in parliament on Friday which his party is expected to narrowly win.