Greeks will be hit with a hefty fine if they do not spend almost a third of their income electronically in an unprecedented bid by the new government to stamp out rampant tax evasion.

The government expects to raise more than €500 million ($808 million) every year from the initiative that will force Greeks to spend 30 per cent of their income electronically, Alex Patelis, the prime minister's chief economic adviser, revealed.

The scheme is part of new prime minister Kyriakos Mitsotakis's sweeping overhaul to revive growth. Credit:Bloomberg

Individuals that fail to meet the target will be hit with a 22 per cent fine on the shortfall. Therefore, if an individual spends just 20 per cent of their income through electronic means, they would face a 22 per cent tax on the remaining 10 per cent bar some exclusions.

The scheme is a radical attempt to cast some light on Greece's huge shadow economy, the world's largest, and is part of new prime minister Kyriakos Mitsotakis's sweeping overhaul to revive growth.