Permanent VAT Cut Extended for Key Commodities in 2024 State Budget

• The final draft of the 2024 state budget will extend the low value-added tax rate of 13% for key commodities for at least 6 months.
• The extension will make the VAT cut permanent for transport, tour packages, gyms, cinema and theater tickets.
• The high VAT rate of 24% will be restored on soft drinks served (not water).
• The Ministry of National Economy and Finance recommended that the budget cover the fiscal costs of this intervention.
• The budget’s good performance contributed to the decision, but the cost is around 400 million euros.
• Additional permanent measures will be implemented in 2024, amounting to €1.6 billion.
• The budget will also provide additional revenue through anti-tax evasion measures.
• The resources from these measures will be allocated to increased spending on health and education.
• There may be only marginal changes in the remaining budget figures, and the final result could be better than the forecasted 1.1% of GDP.
• The target for the 2024 budget is a primary surplus of 2.1%, according to the draft, but the Commission placed it at 2.5% in its fall forecasts.

Source: ekathimerini.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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