Second increase of VAT in 3 months!
It’s 29°C outside….. The sun is shining… a light brise blowing from NorthNorthWest… That’s fairly pleasant for the season. So why do Greeks feel as if they live in a horrible heat wave?
The answer is simple: Today, July 1st , hundreds of consumer products, services and properties become more expensive, as the Value Added Tax increases from 21% to 23%. It is the second VAT increase in 3 months. Simultaneously, for the first time a range of services such as private medical centers and private hospitals, the services provided by notaries, lawyers and taxis pertain in the new VAT system. Added to VAT come salary freezing & cuts and new property tax surcharges. This development is expected to trigger the inflation, which from 5.4% in May is expected to shoot up more than 6% in the coming months.
Test in Private Meds Centers + € 45 Telefon +€ 4,3
Taxi +¢ 6 Toll Post +¢ 10
Electricity +€ 1 Fuel + ¢ 10 (Graphics & Date/Market Research: www.tanea.gr)
In the supermarket
You used to go very Saturday to supermarket and fill up the basket? I would reconsider, if I were you. Then as from today you will need to pay up to 11 Euros more to fill it up. You have complained in the past for paying more than the average European for consumer goods? Apparently you didn’t complain loud enough! From now on you will be burdened with increases of 1.7% in the prices of goods subject to the VAT-rate of 23%, such as detergents, products for personal hygiene, cleaning and by 0.9% in the prices of products covered rate of 11%, such as food and soft drinks.
For the purchase of 39 basic consumer goods a family paid at the beginning of the year 532.07 euros per month. After two increases in VAT the monthly expenses have gone up to 543.48 euros.
Notice: Of course these calculations are more of the theoretical style. In practice I ‘ve realised I pay 60 euros more per month after the first VAT increase last March!
Astra escaping pet food increases
Private Meds Centers & Hospitals
Are you about to die and can’t wait at least 3 weeks for a doctor’s appointment at the State Social Security System? Are you in need of an urgent medical test? You have some savings at the bank for ‘needy times’? Did you hesitate to have a blood test check yesterday? Are you sure to want to have it today? As of this morning health services provided by private hospitals and diagnostic centers are 11% more expensive than yesterday morning. You didn’t know? What a mishap!
A CT scan will cost you 19,25 euros more and you will pay 194,25 euro instead of 175 euros. For an ear surgery and hospitalisation you will pay some 225 – 385 euros more…. Oh, and if you have a private insurance, beware ! Insurance companies are going to increase their policy fees, as health will be more precious than you ever thought.
Greeks escaping health costs via sea sports
Transportation costs – Fuel – Mobile – Electricity
An increase from 1.52 to 1.53 euros per liter today is shaped by the average price of unleaded fuel. Thus, the resulting increase is estimated at 2 – 3 cents per liter. And yes, you are right to be afraid of new price increases. Then increasing transportation costs increase on long term also the prices of transported goods, from paper tissues to pencils, from tomatoes to cheese, from chickpeas to televisions.
For electricity and mobile communication the VAt increases from 10% to 11%. Surprised?
Greeks escape transport cost via bike training
Contracts with lawyers, notary
Thinking of buying a property or sell a property? Considering the VAT you will have to pay to lawyer, notary and Land Registry Office…. I will think twice before I’d proceed.
A real estate contract object to value of € 100.000, will cost you at least 530 euro more.
Why the second VAT increase?
Because the Greek government needs money, remember?
Ministry of Economics has calculated to raise additional revenues of EUR 3 billion. So you have to spend, my dear Greek Consumer!
How many price increases, tax surcharges and salary cuts you can take?
Where you will find the extra money you need?
How will get along? I really have no idea…..