The legislation contains more austerity measures, including pension cuts and a higher tax burden that will go into effect in 2019-20 to ensure a primary budget surplus, excluding debt servicing outlays, of 3.5 percent of gross domestic product.
Athens needs the bailout funds to repay 7.5 billion euros ($8.35 billion) of debt maturing in July.The bill also includes relief measures that will kick in only if fiscal targets are met. They include cuts in corporate and individual income tax rates, and reductions in other unpopular levies.The following are the main measures in the bill:Austerity measures:- The income tax exemption is reduced to 5,600-5,700 euros from 8,600 euros to generate revenues of about 1.9 billion euros. The lower threshold will mean an increased tax burden of about 650 euros for taxpayers.- Up to 18 percent cuts in main and supplementary pensions and freezing of benefits thereafter until 2022. The cuts will result in savings of 2.3 billion euros.Asset sales- Sale of stakes in railways, Thessaloniki port, Athens International Airport, Hellenic Petroleum and real estate assets to generate targeted privatization revenue of 2.15 billion euros this year and 2.07 billion euros in 2018. - Main electricity producer Public Power Corp (PPC)