In a bid to reduce rampant tax evasion, Greece is planning to reduce the Value Added Tax (VAT) paid when making purchases via credit card and is going to offer them some reasons why they shouldn’t use cash, the more preferred way of making transactions in the country.
The Finance Ministry is planning to offer a 10 percent discount on the VAT paid for goods and services whenever payments are conducted via credit or debit cards to make it easier to monitor transactions and boost tax revenues as many businesses prefer cash so they can hide their income.
The aim is for cards to be used even for small purchases at kiosks, as is common in a number of other European Union countries although unless a debit card is used the customer will have to pay interest on small items such as cigarettes and cold drinks.
The credit card incentive clause will likely be included in a draft law on investment incentives that is expected to reach Parliament in September. Earlier reports had suggested another incentive might be offering prizes to lucky receipt holders.
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