The “tax tsunami” that began in 2016 as a result of the signing of the third memorandum will continue unabated in 2017, with highest VAT rates (13 and 24 percent) being extended to several Aegean islands as of Jan. 1, 2017, among others.
By Giorgos Kouros
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The “tax tsunami” that began in 2016 as a result of the signing of the third memorandum will continue unabated in 2017, with highest VAT rates (13 and 24 percent) being extended to several Aegean islands as of Jan. 1, 2017, among others.
Another foray into consumers’ wallets will come with the increase in special fuel surcharges, by three cents per liter on gasoline; eight cents per liter on diesel, and by 10 per liter on LP gas.
Taxes on tobacco products will also commence in 2017, with bulk tobacco rate raised to 26 percent from 20 percent, in terms of retail prices. For a pack of cigarettes, the hike means an increase of 50 cents to one euro. Electronic cigarettes also came under the taxman’s “radar”, with a surcharge slapped on each milliliter of fluid by 10 cents.
Another favorite Greek “pastime”, sipping coffee, will also become more expensive, with hikes of between 10 and 20 percent tacked on to retail prices.
Finally, a hike of 5 percent will be slapped on each monthly or bi-monthly bill.