- Title: EUROZONE-GREECE/VAT HIKE Greeks angry as tax hike takes effect
- Date: 20th July 2015
- Summary: ATHENS, GREECE (JULY 20, 2015) (REUTERS) MEAT MARKET BUTCHERS IN MARKET MEAT HANGING BUTCHER'S STALL SIGN READING (Greek): "BEEF WITH BONES 5.99 EURO" GENERAL-SECRETARY OF ATHENS MEAT SELLERS, KYRIAKOS DIMITRIADES, CHOPPING UP MEAT (SOUNDBITE) (Greek) GENERAL-SECRETARY OF ATHENS MEAT SELLERS, KYRIAKOS DIMITRIADES, SAYING: "Our sales are 70 percent beef. They hit where cons
- Embargoed: 4th August 2015 13:00
- Keywords:
- Location: Greece
- Country: Greece
- Topics: General
- Reuters ID: LVA1RUMO1WYRWKDFY44ZY0FVS84S
- Aspect Ratio: 16:9
- Story Text: Greek consumers and self-employed workers expressed anger on Monday (July 20) as an increase in value added tax came into effect.
The VAT hike was a key pledge in the bailout deal the cash-strapped country reached with international creditors.
In Athens' central meat market, butchers went about their daily routine, chopping up and selling beef, lamb and pork with a sense of resignation about what they said was a bleak future.
Prime Minister Alexis Tsipras had promised "the streamlining of the VAT system" in an agreement signed with European partners, with VAT hikes on food and public transport jumping to 23 percent from 13 percent.
"Our sales are 70 percent beef. They hit where consumption is highest," said Kiryakos Dimitriades, general-secretary of the Athens Meat Sellers Association.
"Already the Greek consumer has been burdened with so many taxes. Isn't it a shame that they may not be able to eat beef any more?" he added.
Despite the change in VAT happening on Monday, Dimitriades said the Athens meat sellers had not raised their prices and have decided to wait for a few days to see its impact before making a decision.
But consumers were angry and accused the government of making life even more difficult.
"Mr Tsipras tricked the Greek nation. I supported him, I believed in him. But he fooled me. He's the same as those who came before him," said one man who declined to give his name.
For others, the increase in VAT was yet another blow to an already suffering population.
"We've been getting loans all these years, and now our lenders want their money back. So we have to tighten our belts and give them back their money," said another man.
Taxi drivers were also feeling the VAT hit.
Forty-nine-year-old Tassos Dritsas is worried about losing passengers who will no longer be able to afford the increased fare, and in turn reduce his dwindling income.
"This increase is not in our best interest. People have no money to pay for cabs because of the crisis. Now with the increase, it will be even worse. Since people are not going to be able to afford cabs, this will be bad for me. In turn, I will not be able to buy things or move," said Dritsas, who has been driving cabs since 1988.
Dritsas says the VAT increase will be counterproductive because it suppresses consumption.
"When there is no money, instead of reducing it (VAT), and getting some money, they (the government) increase it, trying to get more money out of it. But they are not getting it (refers to money). They are not getting it. It's better to have less money and get it rather than increase it and not get any money," he said.
Changes to VAT have already sparked concerns from businesses worried that increases will drive away customers and cut sales.
Plans to increase VAT on Greek islands, which currently enjoyed a reduced level, are not likely to be implemented until the autumn, having been resisted by the junior coalition party in government, the Independent Greeks.
On Monday, Greece's banks reopened three weeks after closing to stop the system collapsing, the first cautious sign of a return to normal after a deal to start talks on a new package of bailout reforms. - Copyright Holder: REUTERS
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