ECONOMY

Venizelos takes step back on restaurant VAT

The strong reaction of restaurant owners to the increase of value-added tax on food catering services from September 1 led Finance Minister Evangelos Venizelos to take a step back on Wednesday.

He said in a radio interview that the VAT increase for these products and services will be from 13 to 23 percent as planned with no exceptions, given the country?s fiscal woes, but he added that this may change in the near future, in the context of the new tax system.

?I fully understand that the VAT on food catering is high and we shouldn?t normally have such a high rate,? he stated, noting that ?the debate on the national tax system has only just begun, and we are reviewing the VAT rates.?