The VAT war in Greece and the comparison with Spain
S.K.
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Greek households spend more than 20 percent of their income on food, while for the poorest 20 percent, this figure exceeds 30 percent. Spain responded to the barrage of price increases by reducing VAT on basic items, while Greece opted for a "basket for households" and aid for the vulnerable, analyzes Kathimerini.
Syriza argues that the large increase in VAT revenue due to inflation leaves room for cuts in basic food products, while PASOK talks about temporary cuts to reduce inflation, permanent in one category of goods and fight tax evasion.
New Democracy responds that VAT revenues are huge (€13,9 billion in 2022) and any reduction creates a big fiscal hole, and instead proposes a wage increase.
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