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Greece suffered a new wave of price increases of goods and services as a result of another raising of the Value Added Tax. From the first of July this year the main tax rate becomes 23% from the current 21%. The increase applies to thousands of different products on the market as garments, footwear, household and electrical appliances, building materials, cars, bikes, motorcycles, detergents, hair services, school supplies, sales of artwork and others.

The first wave of increase in VAT in Greece was in March when the main indicator of the consumer tax rose from 19% to 21%. According to data of the Hellenic Chamber of Commerce the first increase of the tax has brought only 0.8% increase in revenue in the national treasury, as compared with earnings from last year. The goal of the government of George Papandreou is to increase VAT revenues by at least 14 percent by the end of the year. Companies in the country's alert that with the new increase of VAT there will inevitably be a new barrage of rising prices of goods and services, which under the conditions of a crisis will probably lead to greater stagnation in the domestic market. George Kasimatas President of the Confederation of Greek Chambers said that inflation in Greece will reach a record for the eurozone of 8 percent as a result of continuously rising prices of goods and services.

According to economic experts in the country the new increase will cost about three billion euros to the Greek citizens. The greatest burden on the consumers’ pocket will bring the goods and services which have not been subject to VAT until now, such as the services offered by lawyers, notaries and private officers of the court. There, the customer will have to pay the new increas in the costs of 23%. With the another 11% VAT will increase the health services in private clinics, hospitals and diagnostic centers. The VAT on food, medicine, tickets for public transport, electricity, gas, water, hotel services, facilities for disabled and many other goods and services rose from 10% to 11%. At the beginning of the year it was 9%. The lowest index of value added tax, which is applied to newspapers, magazines, books and theaters became 5.5 percent from the previous 5 percent.

From the first of July will also be applied the new way of tax reporting of taxi services which until yesterday were not obliged to issue receipts, and only paid patent tax. On a cost-benefit principle, begin to operate also the gas stations in Greece, which were deeply against the issuance of receipts. From October on the other hand cash registers will be required also for producers on the popular markets who are selling their own goods in the cities.