Beginning on July 1st, the VAT increases have taken effect. The main VAT rate has increased to 23%, the effects of which are felt by most Athenian residents immediately. For one, Taxis, who are now legally required to provide passengers with receipts, are now incorporating 11% tax in their charges, raising their flag fee to 1.16 euros, while the minimum fare will be 3.10 euros and calling a radio taxi will now cost 1.88 euros. The fare for Attiki Odos has also gone up (plus 10 cents, for a total of 2.80 euro) due to these changes, and similar increases are expected on the national road tolls.
The VAT increase to a standard rate of 23% also applies to petrol, threatening an already vulnerable car market. Indeed, new car registrations plunged 54.1 percent in May, compared with the same month last year, with the car market suffering more than any other commercial sector of the Greek economy, the Association of Car Importers and Dealers said on Wednesday.
The association said that a "free fall" in the car market this year would resuld to lower tax revenues for the state and urged the government to cooperate with the car sector which covers around 5.0 percent of regular budget revenues or even 10 percent if fuel tax was included.
02.07.2010
