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  • Indirect tax hikes imminent on coffee and e-cigarettes

    The government will have to introduce measures worth 5.4 billion euros by 2018, in order to meet its bailout-mandated fiscal…

    The government will have to introduce measures worth 5.4 billion euros by 2018, in order to meet its bailout-mandated fiscal targets. According to the plan negotiated between Greece and its creditors, the government will have to make 575 million euros in 2016, 1.553 billion euros in 2017 and 1.719 billion euros in 2018.

    Based on government plans, these funds will come from:

    • Raising VAT from 23% to 24% in July 2016
    • Raising special tax on fuel, diesel, kerosene and natural gas (June 2016)
    • Reforming vehicle taxes (June 2016)
    • Readjusting ENFIA property tax to cover losses from the reduction of objective tax values (June 2016)
    • Raising special tax on beer and abolishing 50% tax exemption on alcoholic beverages currently in place in the Dodecanese Islands (June 2016)
    • Raising taxes on cigarettes and tobacco (June 2016)
    • Introducing special tax on coffee and e-cigarettes (January 2017)
    • Introducing an overnight accommodation tax for hotels and room rentals (January 2017)
    • Introducing a 5% tax on Internet bills and a 10% tax on subscription television services (July 2016)
    • Raising the tax on investment vehicles, UCITS funds, Real Estate firms and Portfolio Management Companies (July 2016)
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