“VAT to be reduced in some products,” says one minister, “no way” says another
Development and Investment Minister Adonis Georgiadis left open the possibility of reducing the Value Added Tax on a series of products to contain price increases. Speaking to Mega TV on Tuesday, Georgiadis said that the government is considering reducing the VAT on certain products, adding that this is a measure that is under consideration in order to intervene through tax relief on certain types of products and to curb the inflation wave that the country is experiencing.
On Wednesday, both the Finance Minister as well as the government spokesman rebukeδ the Development minister stressing that the government had no such plans.
Finance minister Christos Staikouras told Parapolitika FM that “At the moment, there is no possibility of reducing VAT rates.” He pointed out that “we can not derail the budget in January.” He stressed that the budget of 2021 closes with a primary deficit of 7% of GDP (around € 13 billion), which should be zeroed in 2023.
In an interview with ANT1 TV, government spokesman Giannis Oikonomou neither confirmed nor rejected Georgiadi’s announcement saying that the government will soon announce its interventions regarding the VAT on basic products.
He stressed that the government is monitoring development because since the beginning of autumn there are signs of big price increases, which due to energy but also the difference between supply and demand as part of the side effects of the pandemic have increased prices all over the world.
However, speaking to Real FM a little later he said “the increase of the income and the correct operation of the market and not the reduction of the VAT are the government priorities to tackle price hikes.”. to the Government’s priorities for tackling accuracy.”
PS. While two ministers cannot agree on one issue, Greeks keep paying exorbitant prices for heating, electricity and basic needs products waiting for this conservative government to set its priorities… The subsidies in natural gas have not be implemented yet, still fourth months after they were announced.