British Tourists To Be Highly Affected By Greek Tax Hike Plans

Greek tax hike plans introduced by the leftist government would substantially affect British tourists holidaying in the country. This tax hike would be imposed on some of its largest islands that include Santorini and Mykonos and restaurants bills would also reflect a fair share of such hike.

Telegraph UK reported that undertaking such an action might be imperative for the Greek government to stay in euro. On Monday, the government proposed that in case of Greece’s Aegean Islands, special tax exemptions schemes are already in the process of getting abolished under reform plans. Visitors primarily Britishers could face upto 30 percent hike in the VAT bills charged for goods and services provided on the islands.

The Greek government could be forced to take another set of such severe measures in order to be entitled to a bail-out of AU$14.62 billion. This unfortunate financial condition of not being able to generate cash could make Greece a defaulter on the International Monetary Fund.

Last week amid a series of emergency summits, Athens declared a reform blitz of AU$16.25 billion in order to retain the single currency system. Although the outcome could not be confirmed, yet lenders have agreed to discuss on the issue with eurozone finance ministers on Wednesday in Brussels. Greece as a holiday destination has always been at the top for tourists and one of the reasons could be attributed to “lower levels of consumption tax.” However, the government has been reluctant in enforcing higher revenues.

Panos Kammenos, one of the leaders of Greece’s junior coalition party has voted against the measure and ensured that the VAT amount would not change “as long as he exists.” Governor of south Aegean cluster, Yorgos Hatzimarkos insisted to hold a referendum over the proposed plans. Based on travel statistics, millions of British tourists travel to Greece every year and would be largely hit by the VAT hike plans on restaurants which could rise from 13 percent to a maximum of 23 percent. This might end up attracting lesser visitors each year.

Greece's national tourism board confirmed that “discussions on changes to VAT are still underway as negotiations have not yet concluded.” Yannis Michelogiannakis, MP of the Syriza government suggested that the proposals could prove to be a milestone in the present scenario.

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