Troika pressures to abolish the reduced rate of vat

19:29 3/11/2014 - Πηγή: NewsBomb

Disagreement between government and the troika for the reduced rate of VAT

While the government is considering extending the reduced VAT rate of 13% in other sectors beyond the restaurants, Troika has intensified pressures for the repeal of the measure on islands, where applicable.

The IMF, the EU and the ECB's call for reform of the current VAT system

in Greece, which is in force since 1987, and they focus on the need for a single VAT rate for all goods and services throughout the country.

In the plan which had been prepared in the past by the technical stuff of the troika, concluded that the replacement of the three rates (6.5%, 13% and 23%), by a single rate of 15.5% would have neutral cost in the budget.

According to information, the new proposal of the Troika is to reduce the high rate of VAT from 23% to 18% and change the 30% reduced VAT rates applicable in the islands of Lesbos, Chios, Samos, the Dodecanese, Cyclades, Aegean islands, Thasos, Samothrace, Sporades and Skyros (5%, 9% and 16%).

However, the Treasury did not consent to this possibility, arguing that such a change would bring turmoil in the market. Instead the ministry reportedly considering extending the reduced VAT rate of 13% in the construction area and of coastal tickets.