Reducing VAT rates can positively impact businesses and consumers, leading to lower prices for goods and services, increasing consumption and boosting economic growth.
The Greek government’s decision to extend the reduced VAT rate on certain product categories such as passenger transport, coffee, catering, cinema tickets, soft drinks, package holidays, gyms, dance centres and swimming pools until 30 June 2023 is intended to help industries negatively affected by the COVID-19 pandemic. This measure will help reduce the cost of these goods and services for consumers and make them more affordable, stimulating demand and supporting economic recovery.
Moreover, the proposed reduction of the VAT rate from 13% to 6% for animal feed and fertilisers can help reduce the cost of these goods for farmers and other businesses in the agricultural sector, contributing to economic recovery.
It is important to note that these measures can still be amended and must go through the parliamentary procedure before they can be implemented.