Financial and business news from Bulgaria

Lower prices in Greece from 1 June

Greece reduces the VAT for air, sea, bus and public transport, coffee and all soft drinks in cafes and restaurants and summer cinema tickets from 1 June to 31 October 2020. The tax is reduced from 24% to 13%, which is expected to lead to lower prices for specific products and services, Nova TV reported.
If the owners of cafes and other catering establishments decide to apply the reduced VAT directly to prices, it will mean that in the next five months coffee and soft drinks, such as juices, teas and more, will be between 20 and 50 cents cheaper.

Specifically - coffee, juice or tea, which cost 3.5 euros, can already cost 3.20 euros, or instead of 4 - 3.65 euros.

As was the case, however, when VAT increased and the owners decided that the difference in prices should be at their expense and not for that of the customers, it is not now excluded to do the same so that prices remain unchanged.

Greek government spokesman Stelios Pezzas told a regular briefing that with the new tax breaks, businessmen have every reason to apply part of the VAT reduction in lower prices for consumers.

Greek Prime Minister Kyriakos Mitsotakis said in a video message to citizens that he knows the importance of cheaper transport by bus, boat and plane.

"I want those who travel and go on holiday to do so this summer at the lowest possible price,” he said.

In practice, this would mean that the ticket for Athens city transport, now 1.40 euros, would be 1.28 from 1 June, but Greece's Deputy Minister of Transport and Infrastructure Yiannis Kefaloyanis said the possibility of further price cuts is being considered.

With regard to other tickets, for example, if a boat trip to one of the Greek islands now costs €80, with the reduced VAT it should cost €73.

Train travel from Skopje to Thessaloniki and back now costs 19.50 euros in both directions, and with reduced VAT should be about two euros cheaper.

As far as bus transport is concerned, for example, the ticket to return Athens-Thessaloniki is now 59 euros, with the reduced VAT should be 54 euros.

The VAT reduction for the same period of five months is also provided for travel packages. From the previous ratio 80/20, i.e. VAT of 13 per cent for 80 per cent of the package and 24 per cent for 20 per cent of the package has now been reduced to 90/10 — 13 per cent VAT will be for 90 per cent of the package and the remaining one tenth will be with a tax of 24 per cent.

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Administrator • 2020-03-14 13:30:20