Confirmed – Greek standard rate VAT to increase to 24%

On the 22nd May 2016, the Greek Parliament confirmed that the standard rate of VAT will rise from 23% to 24% on the 1st June 2016.

This is part of a group of measures, agreed to after 6 months of negotiations with is creditors, Greece hopes will help unlock bailout funds needed to repay loans and cover the gap in the 2017-18 budget forecast. It is estimated that the rise will generate between €400m and €500m additional revenue.

However there is still much scepticism as to whether the Tax hike will be counterproductive or not, as Greece are still in a recession many believe that raising VAT is one of the worst things they could do right now, especially after the previous VAT hikes and scrapping of the lower rates for some Greek Islands.

This could also lead to Tourists and companies going else where.