VAT Hike Rumors On Restaurants Worry Professionals

The possible increase of the VAT on restaurant services to the highest rate, at a time when tourism is trying to lead the Greek economy towards recovery, would seriously reduce the competitiveness and attractiveness of the Greek tourism product, the Association of Greek Tourism Enterprises (SETE) said recently.

According to reports, the Economy Ministry has discussed the possibility of increasing the VAT on restaurant services from 13 to 23 percent.

SETE said the travel package cost would increase by three percent if the VAT is raised 10 points.

“Under the current circumstances, it is impossible to even think of an increase in VAT rates,” the Hellenic Federation of Hoteliers told the press.

The federation said such a measure would exacerbate the decline in consumption and affect the competitiveness of Greek hotels while the growth of State revenue would not be ensured.

On its part, the Hellenic Hotel Chamber underlined that restaurant services play an important role in the overall cost of a holiday and give the tourist the final say whether or not a destination is cheap or expensive.