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Greek gov’t: reduction of special tax on heating oil out of question

Just in case you were hoping to be able to heat your home in upcoming winter: no way! Greek Finance Ministry issued a statement dismissing media claims that the special tax imposed on heating oil in 2012 would be decreased in upcoming winter.

“There is no such issue,” the Greek FinMin statement  said on Monday.

Of course, there is no such issue. The government would not even dare to make such a proposal to the Troika especially after the failure of the Value Added Tax reduction in catering services. Less than 25% of restaurant, tavern and cafeteria owners participate in the program “lower VAT, lower prices”. The measure was meant in order to boost consumption through lowering the V.A.T from 23% down to 13% and consequently the prices.

PS best method to come through a cold winter without heating is swimming in open sea also in winter months. At least till end of December. I told you so last winter, remember?

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8 comments

  1. I would be most interested to hear from anyone that has actually experienced this reduction in VAT being reflected in their taverna/kafeneion bills? Guess it just means when they get caught out they owe less??

  2. Does anyone have evidence that this reduction in VAT is actually getting passed on to clientelle?
    Or another random question “When was the last time you saw a reduction in prices anywhere here in Greece?:

  3. price for coffee dropped since last year. you can get a coffee to go for 1 euro (it used to be even 3.5)

  4. For those who still have jobs: incomes have decreased 30% or more…. what makes the government think that by lowering VAT would make us spend more money in bars/restaurants?
    And the bars/restaurants that have not lowered their prices… they are probably struggling to pay their own bills and rather keep the extra that they make from lower VAT in their own pocket.

    Have the lawmakers in Greece actually finished preschool or what!!! (LOL) One does not need to be an economist to understand that whatever measures are being made it will not improve the economy! Higher salaries and jobs will make us spend money simple as that!!!!

  5. it’s a pilot program, not all caterers are obliged to participate.
    If I go out for a coffee my gain is 0.10 euro cents. also for suvlaki. so I already have started saving money despite the crisis.:)

  6. so it is!

  7. What people fail to mention is that the radical increase in VAT (from 13 to 23%) was generally absorbed by restaurants because it was a very bad time for prices to go up. Consequently you can hardly blame them for not passing on a decrease back to what VAT on meals used to be.

  8. that’s true too. but quite some rest-owners rounded up upsides, more than 23%.

  9. In April Stournaras claimed that total revenue from heating oil tax increased by over €100 million due to the increased rate despite a sharp fall in consumption. See http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_20/04/2013_494999

    Today Ekathimerini are reporting that total revenue from heating oil tax fell €300 million. See http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_02/09/2013_516758

    What’s €400 million between friends, especially if the friend is a lying government minister?