Greek government implements a rise in VAT with the top rate at 23 percent
euronews (in English)
2015-07-20
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Shopping became more expensive on Monday due to a hike in VAT.
The tax on most goods and services including processed food has gone up from 13 to 23 percent.
The new rates are part of the requirements set by creditors for the country’s third bailout.
Five years ago the rate was nine percent. Fresh bread will not be affected this time but bakers will be hit with larger bills as ingredients will go up in price.
“We have past experience from raising the VAT on food products – two years ago it went up. Then sales went down and businesses laid off employees,” explained Giannis Manos.
Consumers’ cash in hand has already been stretched by capital controls VAT could now tighten their spending power even more.
“I got 50 euros from the ATM. I have already spent most of it. Now I have 5 euros to last the week. Is that possible?” said one shopper.
The household bills its reckoned will go up around three and a half percent. And it’s not just processed food which will see a rise t
The tax on most goods and services including processed food has gone up from 13 to 23 percent.
The new rates are part of the requirements set by creditors for the country’s third bailout.
Five years ago the rate was nine percent. Fresh bread will not be affected this time but bakers will be hit with larger bills as ingredients will go up in price.
“We have past experience from raising the VAT on food products – two years ago it went up. Then sales went down and businesses laid off employees,” explained Giannis Manos.
Consumers’ cash in hand has already been stretched by capital controls VAT could now tighten their spending power even more.
“I got 50 euros from the ATM. I have already spent most of it. Now I have 5 euros to last the week. Is that possible?” said one shopper.
The household bills its reckoned will go up around three and a half percent. And it’s not just processed food which will see a rise t
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