The Athens Stock Exchange Members’ Association (SMEHA) on Wednesday called for the abolition of capital gains tax and urged the finance ministry to come up with a better proposal - in cooperation with the market -- closer to existing tax codes abroad.

SMEHA said the capital gains tax should be abolished as the Greek market suffered from lack of volume, a significant criterion to attract foreign investors.

The Association also recommended a reduction of a withholding tax on dividends, currently at 25 pct, to encourage investment activity in the market and noted that a transactions tax offered a comparative advantage to foreign investment firms.