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Victoria Mindova

The introduction of cash registers everywhere in Greece turned out to be a difficult task for the Ministry of finance, especially when it comes to the so called “people’s” markets. These markets have a long term tradition in Greece and they mainly sell vegetables and fruits, however also eggs, honey, flowers, olives and spices offered by the producers themselves or by small private merchants. The idea about the cash registers on the stands of the people’s markets is not a news and it has its supporters, however also its opponents.

The farmers are indignant that the changes in the tax legislation will “eat up” their profit from the sale of their own production which is anyways small. Most of them refuse to give the merchandize they have produced to trader who will be responsible for the sale to the end customers as they believe that the purchase prices are too low. On the other side are the merchants of agricultural products who are selling side by side with the producers on the people’s markets. The merchants are registered as people practicing liberal professions and are accounting on the basis of their revenues and expenses, they issue receipts and pay the imposed VAT. These are rules which do not apply for the farmers in Greece.

“The government has no idea what it means to be a farmer. It wants to introduce the revenue-expenses method for taxation, however it refuses to accept the expenses we have made”, complains a producer from Chalkida and continues: “Currently the tax authorities do not recognize the invoices we have presented for the expenses made for the purchase of seeds, fertilizers or irrigation, nor can I present an invoice for the work I have put in my production. How do they expect to impose a tax on my profit from the sale when they do not recognize the forming of the price of the goods I have produced.” He explains that the farmers are currently facing the wall – the price of the end products has increased and with the increase of the VAT and the excise duties the purchasing power of the citizens has decreased.

The opinion of the merchants on the other hand is that the farmers have big profits from the trade and the government does not apply fairly the law for the taxation. “The fixed annual tax for the farmers does not really account correctly for the turnover they have made,” says a merchant of vegetables. “The merchants are working for years with cash registers on the people’s markets – we pay VAT on the turnover and additionally a tax is imposed on our profit as it is written in the law. The farmers on the other hand do the same thing we do (they sell), however they do not pay VAT, nor do they have a tax on the profit,” he clarifies.

The tension between the producers and the merchants was additionally increased after the announcement of the strikes on the part of the Union of the Greek agricultural producers. The main slogans which were made popular by the media were: “NO! to turning the producer into a merchant”, “NO! to the new taxation”, “NO! to the increase of the production price”, “NO! to the introduction of the 10% VAT”. The protests were announced for Thursday, April 8^th this year, however they were put off later on. “The government will do whatever they have decided to do, so there is no point in protesting,” says a farmer from the Attica region. A merchant of potatoes from the municipality of the capital also announces “Even if there is a strike I will still work. I have been waiting for years for the cash registers to be introduced at last for all the stands so I support the new changes.”

The way the people’s markets work is each day of the week merchants and producers of agricultural products to place their mobile stands in various neighborhoods of Athens. On Saturday each municipality has its own vegetable market from which the citizens of the capital can get fruits and vegetables straight from the village. The prices of the products offered on the market are highest at the time of the opening of the market at seven o’clock in the morning and gradually decrease with the passing of the day. The markets finish work at two o’clock in the afternoon when the customers can take advantage of offers like “Pay for one lettuce and take three!”

This is how it is done in all the big cities throughout the country and the agricultural producers in the region can directly sell their products. The new measure for the taxation of the annual income, according to which the tax payers will have include in their tax form a list with receipts of up to 30% of the expenses they have made through the year will change the situation in the people’s markets. The citizens comment that they have more advantages to buy from the supermarkets which are issuing receipts rather than buying from the stands. “Once upon a time there was a big difference in the prices of vegetables sold on the markets and in the supermarket. Now it is no longer like this. Besides, nobody can guarantee us anymore the quality of the products they offer. The tomatoes for example are tasteless everywhere nowadays. If they don’t give me a receipt there is no point in buying from the market,” says an old lady who had gone out to buy potatoes.