With just two days to go before the new VAT rates and the hikes in the taxation of cigarettes and spirits kick into effect, the government yesterday assured shop owners they would be given some leeway in adjusting their tills and software.

At the same time, the Economy Ministry said it would unleash the full might of its financial crimes squad (SDOE) from next week, to crack down on tax evasion. The hikes - the standard VAT rate will rise from 18 to 19 percent, the rate on food, fuel and services will go from 8 to 9 percent and the lowest rate will go from 4 to 4.5 percent as of tomorrow - are hoped to provide a much-needed boost to state revenues.

«Our immediate priority will be to expand and make more effective checks on the regular payment of VAT, and to reveal gangs that use fake receipts,» a SDOE statement said yesterday.

Meanwhile, opposition leader George Papandreou denounced the tax hikes as «a raid» against poorer Greeks. «Until yesterday, [the government] claimed they would impose no new taxes,» he said. «They tricked us all.»

But government spokesman Theodoros Roussopoulos argued that the hikes would not make much of a dint in people's finances. «If someone's monthly expenses were 500 euros, with the 1 percent VAT increase they will pay an extra 3.50 euros a month,» he said. «This is not pleasant, but we had to take certain measures.»