Many Goods and Services in Greece Go Up June 1st After Tax Hikes



super-marketGreek consumers will see the prices of many goods and services go up as of tomorrow, June 1st, when new excise taxes and VAT raises go into effect.

The tax hikes and new levies are part of the bailout agreement the Greek government has signed with lenders.

Primarily, the increase of value added tax from 23% to 24% will force price increases in a long chain of goods and services. Food staples such as pasta, rice, canned goods, coffee, tea, margarine, soft drinks, juices etc. Also, electrical appliances, electronics, automobile parts, stationery etc.

Similar raises in prices will apply in mass transport tickets, tolls, restaurants, coffee shops, bars, and night clubs. Also electric, water and telephone bills will increase along with lawyer and doctor fees, electrician and plumbing services and so on.

The islands of Syros, Thassos, Andros, Tinos, Karpathos, Milos, Skyros, Alonissos, Kea, Antiparos, Sifnos will lose their reduced VAT privilege and go to a 24%. VAT on border islands will also increase to 17%.

As of June 1st, a new levy will force an increase in beer price to 20%, while a 10% excise tax will start applying to cable television.

New taxes will also be added to automobiles, while an increase in petrol will make unleaded gasoline at least 4 cents more expensive per liter.

The first wave is also an increase in the beer tax increase caused up to 20% on the retail price and the end 10% in pay TV.

The automotive market will see hikes in registration fees and additional taxes according to the value of the vehicle. Also, an additional “environmental” levy will apply based on CO2 emissions.

Automotive dealers say car prices will increase significantly, especially for cars costing more than 15,000 euros and have emissions above 120 grams of CO2.

In addition, public sector employees and pensioners will see more taxes withheld from their paychecks as of May 27. Even those with low wages (650 euros per month in the private sector and 750 euros in the public sector) will see more taxes withheld. In addition, the former will see 0.5% of their wages going to security funds.