Prime Minister Alexis Tsipras announced on Tuesday the reduction of Value Added Tax on food items and catering services. The reduction from 24% to 13% is expected to contract a relief for millions of Greek households who have been paying a high price to staple food items since 2015.
Which items are affected:
Coffee, cocoa, tea, herbal teas, sugar, slat, vinegar, spices, sausages, jams, chocolates, wafers, croissants, nuts, biscuits, canned food, snacks, packed bread, snacks, cereals, oils from sunflower, soybeans and corn and all vegetable fats. food items based on flour and cereals, products for soups, sauces and broth, fish and certain kinds of pasta.
However, a day later, Greeks were bitterly disappointed to find out that the V.A.T. in their favorite drink, the coffee will remain at 24%.
After the outcry, the Finance Ministry modified the law amendment on Monday (May 13) and suggested reduction for coffee VAT when the product is sold in supermarkets. However, for served coffee, the VAT remains at 24%.
In addition the V.A.T. will also be reduced from 24% to 13% for catering services and this will affect prices for food in grill diners, pizzerias, bakeries, restaurants, taverns, cafeterias and cafes, patisseries, snack bars, fast food facilities, canteens etc.
The V.A.T. reduction is permanent and will be implemented as soon the bill in approved by the Greek Parliament. The government aims to bring to effect in May, and before the European and municipality elections.