A second wave of price hikes for products and services is coming with the abolition of the 30 percent discount on value-added tax rates on certain Aegean islands on October 1, as well as the VAT increase from 6.5 percent to 13 percent on tourist accommodation.
According to a Finance Ministry official, a ministerial decision will be issued in the next few days instructing enterprises on those islands to revert to the country’s 6 percent, 13 percent and 23 percent VAT rates from the current 5, 9 and 16 percent by October 1.
The law provides for the abolition of the discount for Aegean islands with a lot of tourism development and a high per capita income from October, while the rest are set to follow on June 1, 2016. The remotest islands will continue to enjoy a discount.
The most likely scenario provides for an immediate end to the discount for the Cyclades and the Sporades groups of islands, including Myconos, Paros, Santorini and Skopelos. The second scenario introduces income criteria that will determine which islands will be excluded from the waiving of the discount.