Government to Scrap Controversial Wine Consumption Tax

After a long debate about the effectiveness of the highly unpopular measure, the government has decided to scrap the controversial special consumption tax on Greek wine.

The measure, which not only did not meet revenue targets, but actually boosted illegal trade in wine and grapes, will be halted by the end of the year.

Minister of Rural Development Vangelis Apostolou said that the ministry is working on the legislation to scrap the special consumption tax on wine and it is expected to be ready before the end of the year.

It is a commitment by prime minister Alexis Tsipras that the tax will be abolished by the new year, Apostolou stressed.

Finance Ministry sources told daily Efimerida Ton Syntakton that the special consumption tax on wine caused more damage to the sector of wine producers than it brought revenues to the state.

The special consumption tax did not increase state revenues and literally backfired. It increased illegal trade in wine and grapes for wine making.

Scrapping the measure might eventually lead to other taxation increases, if the country’s creditors are persuaded to consent.