x

Economy

Prices Skyrocket, Greece Looks to Cut 24% Food Value-Added Tax

ATHENS – Consumers in Greece overwhelmed by soaring costs for energy could get a break over food prices with the New Democracy government considering cutting a 24 percent Valued Added Tax for the goods.

The VAT is applied on supermarket purchases and puts the cost of even some basic necessities out of the range of household being besieged by rising prices and other assessments, with electricity bills going through the roof.

A cut in the tax – it wasn’t said how much – is being mulled as the government is putting together a 2022 supplementary budget of some 2 billion euros ($2.22 billion,) while also providing some energy subsidies.

Finance Minister Christos Staikouras told Parapolitika radio that any measures being considered would depend on available space in the budget to absorb the revenue losses during the COVID-19 pandemic.

They would be strictly aimed at products that affect the cost of living for lower-income groups and the vulnerable, finance ministry officials had said, while Staikouras said they would have to be balanced against affordability.

The reduction of VAT was also delicately mentioned by Prime Minister Kyriakos Mitsotakis who said that it as a “measure in the quiver” of the government without indicating whether it would happen.

There was also said to be concern whether a cut in the tax would be reflected in lower prices for foodstuffs or whether supermarkets would just keep it, along with uncertainty how it would deeply it would affect the state budget.

With the world fallout on markets in foods from Russia’s invasion of Ukraine likely to cost Greece as much as 1 percent of its Gross Domestic Product (GDP) of 180.32 billion euros ($200.3) billion, Staikouras said a budget deficit wouldn’t go past that although the paper said the ceiling was 2 percent.

 

 

RELATED

ATHENS — A little-known Greek anarchist group has claimed responsibility for an arson attack on an Italian diplomat's car at her home in Athens.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

Mitsotakis: Today’s Bill Comes to Define a New Field in Which Everyone Should Move

ATHENS - At the end of August 2022, I announced a legislative initative for the upgrading and modernisation of the protection, the operation of the security agencies and the operation of the communications and after the change in National Intelligence Service's (EYP) leadership and the establishment of double check to the legal intrusions," stated Prime Minister Kyriakos Mitsotakis addressing the parliament on Thursday during the debate on Justice Minstry's bill on the lifting of the communications confidentiality, cybersecurity and protection of the citizens' personal data.

The holiday season is swiftly upon us: gingerbread houses, eggnog, and festive parties with our nearest and dearest.

PERTH AMBOY — People are asking questions about a storm protection proposal for New York and New Jersey that would be among the most massive and costly flood control projects ever done in America.

NEW YORK. A delegation of the Diaspora Sector of Greece’s ruling New Democracy party visited New York City December 1-4.

WASHINGTON — The House gave final approval Thursday to legislation protecting same-sex marriages, a monumental step in a decadeslong battle for nationwide recognition of such unions that reflects a stunning turnaround in societal attitudes.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.