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Gov’t to hand out social aid €500-€2,100 to islanders as compensation for the VAT increase

An extraordinary social handout from 500 to 2,100 euros, depending on the family size and economic criteria, will be given to islanders in 2018 as a readjustment offset for the abolition of lower VAT scale applied on transactions on the Greek islands.

On Tuesday, the government announced that VAT rates will increase in 27 islands as of 1.1.2018, thus exempting five islands that bear the burden of refugee flows.

According to amna, the decision for the extra social support is included in the ministerial decree published in the Diavgeia online platform, following a parliamentary amendment that extends for another six months – until June 30 – the use of a reduced VAT scale in five islands of the Aegean that are bearing the brunt of migration flows (Lesvos, Chios, Leros, Samos and Kos).

Eligible for the so-called “VAT compensation” are permanent residents of the islands that administratively belong to the Prefecture of Evros, NE Greece, Lesvos, Chios, Samos and the Dodecanese. They have to have declared their “permanent residentce” in the tax declaration for fiscal year 2016.

However, exempted are the residents on the islands of Lesvos, Chios, Leros, Samos and Kos but also those of Rhodes and Karpathos will be exempted from the extraordinary social handout.

The handout will be provided before the end of year; its total expenditure amounts to 25 million euros.

The criteria and the application procedure follow the same guidelines as those used to distribute the recent extraordinary social handout “social dividend” to the general population.

This is a kind of weird decision as it will hand out an extra of 1,150 euros to families consisting of two adults and three underage children that have annual income between €36,000 – €54,000, for example, or an aid of 1,500 euros to families with more than 3 children with annual income €48,000 – €72,000.

  • 6,000 euro per month and yet a social extra Christmas bonus, while many low-incomers, almost the half of those who applied – were excluded from the social dividend?

It is not clear whether families who happened to be residents of the said islands and received the social dividend will get also the ‘vat social aid.’

It is not clear either, what the lenders think when they read the Greek government will hand out three different social aids in December and before the end of the year.

The official decision here in Greek

Application in www.koinonikomerisma.gr

PS I don’t remember that residents of Athens and other big cities received any kind of  some kind of social extra when the Value Added Tax increased in summer 2015 skyrocketing the prices of basic goods.

Are we heading to elections or what?

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