ATHENS – The reduction of VAT on passenger transport, from 24 pct to 13 pct, will also apply to taxi fares, the finance ministry clarified in a statement on Wednesday.

The reduction in VAT, according to the ministry, "leads to a reduction in the price of air, ferry and land transport fares, including on urban and intercity public transport, such as metro systems and buses. Taxi fares are also included in this reduction, which has been implemented since the day before yesterday, on Monday."

"The reduction of VAT will boost economic activity, but also [support] all those who operate and work in the sector," the ministry said.

The finance ministry and the government are firmly committed to reducing taxes and consider this an important weapon in the ongoing effort to restructure the economy, it added.