Greece wants to cut reduced VAT rate

Greece has launched an ambition set of promises on lowering the rates of major taxes. This included cutting the reduced Greek VAT rate from 13% to 12%.

The Greek VAT rate increased twice during the financial crisis and is now 23%.

Many of goods previously categorised at the reduced rate were subsequently reclassified at the 23%, including restaurant services. However, Greece moved restaurant and tourism services back to 13% VAT.

The Premier, Antonis Samara, said corporation and income taxes will also be reduced to 15% and 33, respectively.