Authors: Eleni Vrentzou, Elpida-Nikoletta Kefala

Title: Tax policy and social welfare during the pandemic period (2019-2021) in Greece

Abstract

Tax policy and social welfare are interrelated elements of public policy that have a direct impact on the total population. In crisis periods such as pandemic years, governments should discover the perfect balance between fiscal demands and health protection with the parallel need to support individuals and businesses that are financially and socially affected.

Tax policy is an integral element of the fiscal policy for all the countries. The tax policy of a country defines the types of taxes, tax rates and tax incentives. Tax revenues, which are used to finance essential public goods and services, infrastructure and health care for social welfare and defense programs should also be combined with the examination of the society needs and special expenses and supports that may be required.

The present study focuses on the relationship between fiscal policies and social welfare in Greece during the Covid-19 pandemic period. This paper analyzes some of the main elements of the economy and of the governmental decisions during this period which is followed by a comprehensive description of similar policies in other countries in the same period, while the different levels of economic development and social welfare were also taken into account.

A comprehensive description of the pandemic is also provided, ranging from its onset and spread to the global response and its impact on health and the economy. The social and economic implications are examined, with particular emphasis in Greece. Following that, the focus of the study shifts towards assessing the tax and social measures implemented in Greece between 2019 and 2021, including an analysis of the relationship between fiscal policy and social welfare in the country during this period. Then, the correlation between the specific indicators of social welfare and taxation, for the period 2010-2021 is also examined in order to compare the results between different periods of the economy.

The study concludes by summarizing and highlighting the complexity and interaction between fiscal policy, tax policy and social welfare, particularly under crisis conditions. It emphasizes the significant role of taxation and its specific elements especially during exceptional circumstances and underscores the need for a balanced approach to fiscal policy to promote social well-being with direct impact on tax revenues. An important aspect for future investigation is to extend this research to other crisis periods and compare the different characteristics of the periods and of the tax policy applied in each case in order to extend the conclusions to the general tax policy rules.