OECD against low VAT rates

In its report for Greece, the OECD recommends reductions in the use of low rates and exemptions currently in force for VAT, in tax exemptions and in the tax-free threshold applied to income. It also proposes increasing taxes on products such as tobacco, and imposing a special consumption tax on fat and salt.

However, discussions in Greece are heading in the opposite direction: The opposition is calling for a reduction in value-added tax rates to address inflation, which the government is not accepting, as it estimates that they will not be passed on to consumers.

At the same time, the government has launched discussions on changes to the tax rates, with the aim of supporting middle incomes. Efforts to combat tax evasion are now bearing fruit, already reaping additional revenues of 1.8 billion euros in 2024. In the coming days, the European Commission is expected to...