Greek VAT hike a ‘kiss of death’

VALUE ADDED TAX (VAT) in #Greece has been increased from 13% to 23% on food, transport, and restaurant meals from July 20. It will be followed by a similar rise for hotels in October.

In a note to members, the Association of British Travel Agents (ABTA) said: ‘You will be aware of the announcement of VAT increases which the Greek parliament has agreed to, as part of the package to obtain a financial bail-out. The intention is that many of these increases will come into effect from October 1, 2015, so they would not affect the majority of holidays for this summer.’

But Xenophon Petropoulos, of the Greek Tourism Confederation, said last minute bookings –which comprise one-fifth of holidays – were down by a quarter in recent weeks.

‘We know the tourist industry must help kick-start the #Greekeconomy but this VAT rise is a big burden for us,” he said.

Thanassis Papanikolaou, head of an association of restaurant chains, described the tax increase as ‘a kiss of death’.

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Picture Credit: "Porto-Elounda-aerial-2" by Fkokotos - Own work. Licensed under GFDL via Wikimedia Commons