Greek Defense Minister Panos Kammenos warned the government that he will not support an increase on value added tax in the islands.
The leader of Independent Greeks (ANEL), junior coalition partner in the SYRIZA-led government, said that he is prepared to see the government fall over VAT hikes.
“I will not vote for a VAT increase in the islands even if the government falls,” he said on Greek television. He also said that if there is a plan to kick ANEL out of the coalition government, the proposal to abolish the reduced VAT in islands will be a good strategy because all ANEL lawmakers will vote against.
He claimed, though, he was assured on Sunday evening by SYRIZA chief negotiator Nikos Pappas that the issue will not be included in the proposal sent to Brussels.
However, after Sunday’s cabinet meeting where the new proposal was formulated, some Ministers said that the abolition of reduced VAT in islands “is no longer a taboo issue.”