Tuesday , April 23 2019
Home / News / Economy / Greek New Year Shock: Special Consumption Fees skyrocket fuel and goods prices

Greek New Year Shock: Special Consumption Fees skyrocket fuel and goods prices

The First day of the New Year was kind of relaxed, the majority of the Greek households spent it with family and friends around a festive lunch table. On Monday, January 2nd… here comes the soberness: Unjust hikes in fuel, cigarettes, coffee, landlines and internet. Unjust because the hikes in fuel will increase the cost of production and transport of goods and will affect everyone.

The new measures are not taxes as such but even worse “Special Fees” that are normally higher as imposed taxes in a category of goods.

Special Consumption Fee

on fuel: 3 cents per liter on petrol, 8 cents on diesel and 10 cents on diesel gas

on coffee: 2-3 euro per kilo of roasted coffee and 4 euro on instant coffee. Real increase around 20%. Coffee served is expected to hit 50 cents to one euro per cup.

on cigarettes: 50 cents per package and one euro per tobacco package. Up to 10 euro increase on e-cigarette liquids.

on landline and internet: a fee of 5% on the net bill and V.A.T increase from 23% to 24%. the total increase will be 6.2%.

The hikes are to be imposed before the Value Added Tax. The real price increase will be much higher as also the VAT will increase.

VAT increase on the islands: with exception of Lesvos, Chios and Samos that were hit by the migration crisis, the 30% VAT reduction is scrapped.

The hikes are to be imposed before the Value Added Tax. The real price increase will be much higher as also the VAT will increase.

The government expects to collect 439.6million from fuel, 218million form VAT 25$, 142million from cigarettes, 62million from coffee, 54.2million from landlines 14million from subscription TV/internet.

The new measures were voted in May 2016.

The hikes that will affects the daily habits of millions of Greeks come in addition to the increased expenditure for self-employed and freelancers who see their social security contributions skyrocket as of 1.1.2017.

I roughly calculated that I may need an extra of 600 euro per year. Where will I find this extra?

Still waiting for a miracle to happen, a miracle that will stop the internal devaluation of our lives 🙂

Check Also

US to end Iranian oil sanction waivers for Greece, China, Turkey etc

Oil price jumps sharply today on news that US is preparing to stop all Iranian …

8 comments

  1. It is hardly a shock, they had announced these measures months ago!

  2. Thank you for keeping this blog still. I know you wrote about a year ago to quit.
    I’m from an another European Country, but are living in Greece with my Husband right now.
    Neither of us are watching the news here, manipulating and twisting your minds.
    So, again, thank you for what you do with this blog!
    When I have spare money, I will give you a gift.
    I really wish for a better future for this wonderful country, and people living here. Even in deep crisis, you have a big heart!
    Happy new year to you! Χρονια Πολλα!
    Μy best wishses for you, your family, and loved ones.
    With good health, luck, and love.

  3. This abomination of a government knows very well that their new taxes will result in reduced income for the state, much as it happened with heating oil. The purpose of the new taxes is therefore not to collect revenue but to accelerate economic depression, to spread despair and fear among people and to demonstrate how powerful the occupation forces and their paid lackeys are.

  4. Giaourti Giaourtaki

    Legalize open air Cannabis and do it much faster than Europe, allow only natural stuff without genetic engineering and trade mark the good old Kalamata-Grass

  5. I think this is outrage people in greece have now sufered for a long time with economic cuts here and there. And then now those new FEES or actual taxes wil make it even harder for the people living in greece and not only for the greeks but for all of us living here. This can very well end up with a mass imigration from greece to other european countries and that will just mean that the greek goverment will not get even a part of that money they expect. Alredsy now we can see how the health system collapses. Hotpitals with no heat and not staff enough. This have to stop.

    • Half a million Greeks emigrated in the last 5 years, and mostly high-skilled people — leaving behind pensioners and unemployed people, making the budgetary situation as well as the real economy far worse. This is the stupidity and arrogant Nazi stubborness of the Troika: there is no sign of it ending, requiring some sort of violent revolution to make a difference now, as political representation has failed completely.

      • With you all the way. Indeed, political representation has failed totally, but you know what I think? It is really easy to buy out 150+ votes. I can buy them out for you for say 500K per vote per year? Total: around 80 million per year, still nothing compared to the looting possibilities: buy state enterprises and land at 1/10 of the price, lend money at 2% interest while you can acquire it at negative rates etc. If they are stubborn you can increase the buyout price up to 200 million – still a bargain. This is why representation fails: it is too easy to buy off the representatives!
        The Nazis are stupid, OK, but they have been successful so far. History shows that it is their greed which brings their demise in the end.