Greece:"VAT will be reduced on products", says one minister – "nothing like this"says another.

Development and Investment Minister Adonis Georgiadis left open the possibility of reducing the value added tax on a number of products to contain price increases.

Speaking on Mega TV on Tuesday, Georgiadis said, that the government is considering lowering VAT on certain products, adding that the measure is under consideration to intervene with tax breaks on certain types of products and curb the inflationary wave the country is experiencing.

On Wednesday, both the finance minister and a government spokesman rebuked the development minister, stressing that the government has no such plans.

Minister of Finance Christ Staikouras said Parapolitika FM that “at the moment there is no way to reduce VAT rates.” He pointed out that “we cannot crash the budget in January.” Staikuras stressed that the 2021 budget closes with a primary deficit of 7% of GDP (about € 13 billion), which should be reset to zero in 2023.

In an interview with ANT1 TV channel, a government official Yannis Iconou neither confirmed nor denied Georgiadi’s claim, saying the government would soon announce its intervention on VAT on staple foods.

He stressed that the government is following developments because there have been signs of significant price increases since the beginning of autumn, which due to energy, as well as the difference between supply and demand as part of the side effects of the pandemic, have led to higher prices worldwide.

However, in conversation with Real FM a little later, he said that “increasing revenues and the correct operation of the market, rather than reducing VAT, are the government’s priorities in the fight against rising prices.” with government priorities for accuracy. “

PS While the two ministers cannot agree on one issue, the Greeks continue to pay sky-high prices for heating, electricity and essential goods, waiting for the government to determine its priorities.

PPS As we reported earlier, since the New Year, the government has increased the minimum wage by 2% and promised to increase it by another 2-3% by the summer, while energy prices have increased by 300%, and food prices by an average of 30%. If energy prices remain at the current level, Greece will expect an increase in food prices, followed by services and goods by at least 100%. However, this was discussed at the beginning of the pandemic …
No wonder China bought up about half of all world food supplies…

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