BUSINESS

Customers may not see any joy from VAT cut in food services

TAGS: Taxation, Economy

The food service sector is rejoicing at the government’s announcement for a reduction to the value-added tax rate in this industry from 24 to 13 percent as of next month, expecting the move to boost demand.

It remains to be seen whether consumers will also feel the same joy, as only some of the sector’s enterprises are expected to pass the VAT cut to their customers.

The main argument is that when this government raised the rate in food service from 13 to 23 percent and then to 24 percent, the majority of the sector’s enterprises absorbed the hikes, Giorgos Kavvathas, the head of the federation of restaurateurs told Kathimerini.

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