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The representatives of the local administration strongly oppose the likelihood of increasing the reduced VAT rates on Greek islands that are popular tourist destinations.

The reactions were provoked by statements of Deputy Minister of Finance Nadia Valavani who said that "nothing wrong will happen to Mykonos and Santorini if they switch to the VAT regime like the one in Crete." It is noteworthy that unlike other taxes the proceeds from which may be delayed for months, the increase in VAT is one of the fastest ways to bring money to state funds.

In order to prevent such a change Governor of the South Aegean George Hatzimarkos and Chairman of the Association of Municipalities in the region Fotis Hatzidiakos organised a series of protest actions involving all island municipalities in Greece.

Their first step was to send a letter to Deputy Prime Minister Yannis Dragasakis and Minister of Finance Yanis Varoufakis, stating that they want to meet with them by Friday.

Yesterday the board members of the two bodies held a joint meeting at a hotel in the centre of Athens, which is located near the parliament. In addition, they are planning to be present in the plenary hall of the Greek parliament when it will vote on the measure to increase the VAT on the islands, thus driving the deputies of island regions to face their responsibilities to their citizens.

According to Governor George Hatzimarkos, "No legal framework respects the constitution and allows the separation of islands that belong to one administrative unit in connection with the VAT rate." He also added, "The government must decide whether we on the South Aegean islands evade taxes and must be punished for this by an increase in VAT rates or if we declare sufficiently high incomes that do not entitle us to any EU funding, unlike other regions in Greece."

The Chairperson of the Association of Municipalities in the South Aegean Fotis Hatzidiakos said that "the government should finally begin to inspire confidence," recalling that during the elections in January Alexis Tsipras visited Rhodes, where he said that his government would increase VAT neither for the islands nor for tourist services.

Person in charge of policy in the tourism sector of New Democracy and regional deputy Manos Konsolas said that in previous years, the government of Antonis Samaras defended the regime of reduced VAT rates for the islands. He was clear that the main opposition party would not support the VAT increase in parliament.

Similar was the reaction of New Democracy MP Chios Notis Mitarakis who is in charge of shipping policy and the Aegean region. He points out in a statement that a piecemeal VAT increase for specific islands is impossible, warning that the vote on such a measure would mean a tax increase for all islands.

"This decision is clear evidence of the complete lack of economic programming and it is more than certain that it will lead to the application of a single VAT rate on all other islands in the Aegean Sea. The specific regime of reduced VAT that is applied in accordance with the EU directive affects specific areas and island regions, rather than specific islands. How will they be divided and on what criteria?" writes Mitarakis.

Hours after the statement by Deputy Minister of Finance Nadia Valavani sources close to Prime Minister Alexis Tsipras said that her statements concerning the VAT increase for some "cosmopolitan islands" were "her own thoughts" and that the government did not discuss this issue.