After accusing taxi drivers of harming the tourist season and defaming Greece as an international destination the Greek government decided to give them a helping hand by making things worse!
As from September 1 the VAT for foodstuff served in restaurants, coffee shops, hotels, fast food shops etc will go up from 13% to 23%!! The Small Entrepreneurs Association has issued a statement claiming that this move constitutes a “suicidal choice”, will lead to further loss of jobs and many small enterprises to bankruptcy.
This law proposal applies to about 14.000 catering enterprises employing more than half a million people. Greece will thus become one of the most expensive tourist destinations, according to the Association.
I would like to point out that the VAT for hotel rooms has been lowered in an effort to balance the situation but what actually happens is that the local population will bear the bigger burden, once more.