Following the rejection of the {News-2015-06-24/P/2- tax reforms proposed by Greece on 22 June 2015} in order to extend its bailout, the Greek government has decided to hold a public referendum on whether or not to accept the counter proposal made by the European Commission. Key measures of the proposed package include:

• Increasing the corporate tax rate from 26% to 28%;
• Requiring 100% advance payment of corporate income and individual business income tax by the end of 2016;
• Increasing the VAT rate on restaurants to 23%;
• Repealing the reduced VAT rate that applies for certain islands; and
• Phasing out tax breaks for the shipping industry

The package also calls for other reforms of Greece's income tax code and pension system, and the implementation of a new criminal law on tax evasion and fraud.

Greece, which has already missed a payment deadline of 30 June, will hold the referendum on whether or not to accept the latest bailout package on 5 July 2015.