BUSINESS

Tourism minister sees restaurant VAT rate dropping from 23pct to 13

Tourism Minister Olga Kefaloyianni has suggested that the government will attempt to reduce from 23 to 13 percent the value added tax on restaurant, cafe and bar bills.

The tax was raised to 23 percent by the PASOK government as part of efforts to increase tax revenues but a drop in demand has led to negative results.

It is estimated that turnover in the food and catering sector is down about 40 percent, with 4,000 business closing down in Attica this year, which led to 30,000 jobs being lost.

In the summer election campaigns, New Democracy leader Antonis Samaras had pledged to reduce the VAT rate charged by restaurants.

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