Tuesday , June 25 2024
Home / News / Economy / Greece “doesn’t reduce VAT on food to not encourage consumption,” says FinMin

Greece “doesn’t reduce VAT on food to not encourage consumption,” says FinMin

“We do not reduce the VAT on food, because we do not want to encourage consumption.” This was said by the finance minister of the country where political nonsense has reached an unprecedented level and F*ck Logic prevails.

In an interview with Mega TV on Friday, finance Minister Kostis Hatzidakis said “we do not recude the Value Added Tax on food, because we collect money and then allocate it for salaries, pensions etc.”

He added that “if we lose these revenues, then those who see us will say why the public servants were not paid the money and why the pensioners did not get their pensions?”

He noted that “we do not want to encourage consumption in general. VAT is generally a tax on consumption. We want to encourage investment and production.”

He claimed that all this has to do “with the serious execution of the budget,” adding that because this did not happen in 2020, the country went bankrupt.”

“I want to be the minister of a serious, efficient government that does its job, regardless of the sirens of populism,” Hatzidakis said and claimed further that the ministry has taken measures that have led to a significant reduction in prices.”

It should be recalled that when the opposition was pressing for VAT reduction, all government ministers were shouting that “the measure imposed by Spain and Portugal did not help.”

12 to 6 months later, the ministers still think we are gold fish with a very short memory or just mutated sheep that doesn’t chew the hay but just eat it up.

Check Also

Fires are sweeping in SW Greece; one dead

A 55-year-old man has died while he was assisting firefighters to extinguish a wildfire in …

6 comments

  1. What a load of CRAP. Who are these dictatorial plonkers to say such things? Pay pension and salaries on the back of VAT !!! Efficient workforce but a hungry one. as for government efforts to reduce food prices, HAHA ,I buy roughly the same food products every week and the bill goes up every time which must be very tough for many Greek people. Maybe the country should spend less money on weapons to fight a nonexistent enemy! Greece it seems is falling back to the age of dictatorship.

  2. Huh?

    ?????
    …..

    Speechless.

  3. Those who struggle on a daily basis how to feed a family are not thinking about investments and production.
    But not having proper and healthy diet leads to having non-healthy population, consequently additional health care costs, sick leave, etc.
    Very clever government. Μπράβο!

  4. Nobody_Important

    It is well-established in the economics literature that the poorest spend all their income on food, housing and heating. They do not invest, and probably do not produce much. It is the middle class who are engaged in production and possibly some investments. Only the rich are involved with extensive investments, much of it in property.

    Therefore, the cost of food, energy and housing does great harm to the poorest, and usually has little impact on the rich. The idea that lower taxes on food would increase consumption might be true in the case of starving families, but is otherwise garbage.

    Moreover, the admission made that VAT payments are being used to fund pensions and salaries is an admission that the Greek economy is in very bad shape. Normally, such expenditure should be financed from direct and indirect taxation of private sector production and sales — but not food! Tax on food is a tax on the poor, and a benefit to the very rich (who pay less tax as a result of this political choice). Just disgusting behaviour.

  5. A classic piece of political excrement. I may be mistaken but doesn’t an increase in consumption (demand) lead to an increase in production? The law of supply and demand…..ever heard of that, Hatzidakis?
    Get a life!

    • Nobody_important

      Increased consumption usually requires increased production, but that production is not necessarily from the same country. Basically, Greece imports too much and exports too little — which gap is paid for with tourism receipts or public sector borrowing.

      It is not that it is incorrect to state that Greece has very high consumption and too low production in its economy. The issue is to understand why that is so, and propose logical policies to help address the issue. Neither an adequate understanding nor intelligent policy is offered by the ND government and the Bank of Greece. They are just whining about the Greek people, and refusing to accept any responsibility for the structural problems that they helped cause. Useless cretins, in fact…