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Are you ready for the new VAT hikes?
Posted by keeptalkinggreece in Economy
One, two, three weeks… Ready? Go! A new waves of price hikes are going to hit the Greek households as the low Value Added Tax is going to increase from 11% to 13% as of January 1, 2011.These sweeping hikes covering from food items to utilities and from cinema tickets to taxis will hit millions of Greeks suffering from salary freezes and wages cuts, increasing unemployment and a strong recession that leaves shops empty and consumers stubbornly refusing to spend.
Yes, Yes, all citizens have to pay the spendings of a wasteful and greedy state that does not dare neither to put behind bars and confiscate their properties and assets those responsible for decades of splurging public money, neither proceeds to heavy cuts in the public administration as they are they build large pools of government faithful voters.
My life will become more expensive. Yours?
The VAT hikes will be applied to all food items (with the exception of milk), to utility bills of electricity, water, telephone and natural gas. Also to products sold in cafes and restaurants. Public transport tickets, tickets to movies and concerts will increase as well.
No excluded from the VAT hikes is the cost of services from electricians, plumbers, painters and general professionals providing renovation of old buildings, taxi, private clinics and diagnostic centers.
The increasing VAT rate to 13% bears up also the reduced VAT of 5,5 to 6,5% which covers newspapers, magazines, books, theater tickets and picture books for children.
The VAT of 23% remains unchanged.
On the Aegean islands falling to a reduced VAT rate, the low VAt will be 5% and the high 9%.
Cigarettes & Tobacco: Greek products will undergo an increase by 15% as the fix tax increased from 10%. A package of Greek cigarettes will cost € 2.60 (2.40 euros now).
It is most possible that also foreign brands will increase, thus rising the price of a package currently sold at € 3.80 to 4 euros.
Some of you might remember I told you to start saving money, already on September 14, 2010: Start saving money! News VAT increases are coming…
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