NEWS

Opposition chief vows VAT cut on tourism services

TAGS: Politics, Economy

New Democracy chief Kyriakos Mitsotakis has vowed to reduce the value-added tax on tourism-related services to 11 percent if he is elected prime minister.

Speaking at the general assembly of the Greek Tourism Confederation (SETE) on Thursday, the conservative leader said that if elected, VAT on services like food and beverages, and accommodation, will be immediately brought down to 13 percent and to 11 percent more gradually from the current level of 24 percent.

Mitsotakis said that he expects the measure to pay off, as it would be implemented along with a campaign to boost non-cash transactions and steps to crack down on tax evasion.

“I believe it is a measure that would automatically bolster the tourism product itself and would not have a significant fiscal impact, just as it did not in 2013 and 2014,” Mitsotakis said, referring to a tax reduction introduced by the New Democracy government that was in power at that time.

He added that his party plans to implement just two tax rates, of 11 and 22 percent respectively.

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