New tax hikes being considered by the Greek government to cover projected budget deficits include an increase in the special consumption tax on fuels, a development that would make previously cheaper alternatives for motorists in Greece – such as diesel and LNG - more expensive.
A six-percent hike has been repeatedly cited, although no official decisions have yet been made, as representatives of institutional creditors are due back in Athens this week.
A six-percent hike would mean that 1,000 liters of unleaded gas would be taxed at 710 to 720 euros from the current 670 euros. When 23 percent VAT is added, the hike translates into an extra 4 to 5 cents per liter of gasoline.
For diesel, which is still cheaper than gasoline at Greek petrol stations (330 euros per 1,000 liters), the proposed hike in the special consumer tax would add 2 to 3 cents per liter at the pump.
Another proposed duty would be slapped on the current fee on mobile phone connections, along with a tax on cable television subscriptions. The finance ministry has been attracted to the fact that the two current subscription TV providers have attracted one million subscribers so far, with additional companies studying their possible entry into the Greek market.
A measure that will undoubtedly be scrutinized and generate popular dissatisfaction is the prospect of even higher co-efficients for the unpopular ENFIA property tax, which although controversial in nature, has been highly effective in generating revenue to cover projected budget deficits.
New objective tax criteria for real estate are expected to accompany the property tax.
