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Autumn is coming and the government of George Papandreou is seeking new ways to fill the gap in state revenues. According to the Deputy Minister of Finance Filipos Sahianidis, revenue shortfall from taxes and fees in the Treasury reached € 770 million. He explicitly stated that no new economic measures will be taken till the end of 2010, but according to information published in the Greek edition Ta Nea, the financial ministry is considering a plan to increase average VAT from the current 11% to 15%. An exception will be made only for essential goods such as bread, milk, medicines, etc..

Value Added Tax in Greece was increased twice this year. The main VAT indicator on many goods and services flew from 19% to 23% and the average VAT indicator on foodstuffs, certain travel services, music and theatre performances and others was increased from 9% to 11%. The government has not presented formally the new proposal to raise the 11% VAT to 15% yet but in the eyes of Greek economic analysts it is the lesser evil compared to the proposal of the controlling three – the IMF, the ECB and the European Commission. The three proposed the Greek government the option to abolish the 11% value added tax and to tax goods and services in that tax group at 23% VAT.  

The National Confederation of Greek Commerce is concerned that another tax increase in the country will only further catalyze domestic inflation and will further stifle the already reduced consumption in the country. Inflation in Greece reached 5.6% by July this year and its average value for the euro area does not exceed 1.7%. According to analysts of the commerce confederation, if the government increases the VAT again, inflation may even surpass 7%. Traders in the country are seriously worried by the sharp decline in turnover of commercial enterprises due to the reduced consumption. The cut of civil servants salaries in Greece and the reduction of pensions affected the ordinary consumer adversely, explained the Greek traders. They indicated that as a result many companies are financially exhausted and are on the verge of bankruptcy or have already declared bankruptcy.
 
One way to avoid the additional tax burden on ordinary consumers is to fight the deep-rooted tax evasion in the country. The Greek industrialists and traders union announced still at the end of the last year that the annual loss due to tax fraud reached € 30 billion, which equals the country's budget deficit for 2009.

In relation to tax liabilities control, the Ministry of Finance announced the convening of five workgroups to observe and timely correct the implementation of the tax reform of the socialist government. The first workgroup is tasked to monitor and correct the introduction of the reform in state institutions, the second group must observe proper and timely collection of tax revenues. The third workgroup will deal exclusively with large corporate taxpayers (the thousand largest companies in the country). The fourth group will be obliged to monitor and control the correct payment of taxes by owners of large real estates and individuals of higher income. The fifth workgroup will be involved in monitoring the timely filing of tax returns and full payment of tax liabilities.