Controversial VAT hike comes into effect on Wednesday

31 May 2016
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Many goods and services will become more expensive as of Wednesday 1st of June as the controversial VAT hike comes into effect, with the rate growing from 23% to 24%. Shopping bills are going to be more expensive, as the new 24% VAT will be applied to telecommunications, food, clothing, fuel, electric goods, restaurants, tolls and more.

Aside from raising the top VAT rate by 1% though, the government has also raised the cost for Internet and subscription television services and has abolished the discount on VAT that was in place on remote islands (Syros, Thasos, Andros, Tinos, Karpathos, Milos, Skyros, Alonnisos, Kea, Antiparos and Sifnos).

Based on government planning, the special tax on fuel will increase from 670 euros per kiloliter to 700 euros. This translates as 5-cent increase for ach liter of fuel. In the case of diesel the tax will incraes from 330 euros to 410 euros per kiloliter, meaning the overall cost will increase by 8 cents per liter.

The special tax on heating oil will also grow, from 230 to 280 euros, so that customers will end up paying about 6 cents more for each liter. The cost of LPG will also go up, with the special tax increasing from 330 to 430 euros per kiloliter. The special tax on natural gas used for generating electricity will be abolished. Car registration fees will also be based on retail price before taxes and emissions.

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