The National Confederation of Hellenic Commerce (ESEE) has warned that the changes in VAT included in the prior actions bill will trigger a hike in prices. By raising the VAT rate, the government aims to increase its revenue by about 1.4 billion euros.

The price of packaged, processed and canned foods (such as pastas, legumes, flour, sugar, frozen goods, sweets etc) may increase by 8.8% as traders are unable to absorb the VAT hike.

The prices in restaurants and hotels are also expected to increase by about 4.2%, which may have a significant impact on tourist-related businesses. When the discounted VAT rates on the Aegean islands is phased out by October, prices may go up by 12.8%.

ESEE has also warned that the price of tickets in public transportation and taxi fares will also increase.