Greek FinMin: We intend to extend for another 6 months the reduced VAT to cafés, restaurants and transport

The Greek Minister of Finance, Mr Christos Staikouras, spoke on the show “MEGA weekend” about the price rises and the support measures for citizens.

Regarding measures to alleviate the problem of price rises, the Minister said that the subsidy of electricity and natural gas will continue and will depend on the price that will be set every month at a pan-European level and, specifically, in our country.

Moreover, there will also be new measures, that are recently announced, but have not yet been completed.

Regarding the repayable advances, Mr. Staikouras stated that the debts on the platform can now be paid in 96 installments and an extension may be granted until the end of May, for those citizens who want to pay and to have a further 15% discount. From June their debts will be paid in 96 installments, instead of 60.

Reduced VAT for another six months

To the question of whether there will be a debt ‘haircut’, the Minister replied no, as this entails budgetary costs. He then announced that the ministry’s intention is to extend reduced VAT to cafés, restaurants and transport for another 6 months. It is recalled that it normally expires in June 2022.

“This means that this year we have to find an additional 250m euros,” the minister said.

Concerning the special tax on fuel

Regarding the reduction of excise duty on fuel, Mr. Staikouras said that targeted measures were announced for citizens in real need.

“With the income criteria we set, we cover 3 million owners, that is 86% of the total,” the minister pointed out and explained that, if a family owns two cars, and they are registered in different names, with the family income being up to 30,000, then they are entitled to the “traffic” allowance, while an additional 5 euros subsidy will be provided, if the payment is made by card.

In conclusion, the Minister announced that the tax returns will start in the week ahead.