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A domino of price increases

15 March 2010 / 12:03:44  GRReporter
3935 reads

A domino of price increases of the products and services is coming along from tomorrow – March 15th after the Value Added Tax is increased. At the same time the producers and traders got into a disagreement about who will stay in the buffer zone and suffer the effects of the increase of the VAT so that the prices wouldn’t be drastically increased.  

The percentages of VAT are increasing from 9% to 10% and from 19% to 21% as well as once again the special tax on the fuels increases. This will lead to an increase in the prices of the main food products, fuels, telephone bills, electricity and water, tickets, medicines, services, newly build apartments and cars.

The increases of the prices of fuels from the consumer tax have increased the inflation in the country for the month of February by 0,42%. From next Monday there will be a new increase of the consumers taxes on the alcohol, cigarettes and fuels.

In more details the VAT increases to 21% for all types of clothes and shoes, telecommunications, services, furniture and household appliances, cars, motorcycles, transportation, fuels, construction materials, cigarettes, alcohol, real estate properties, electrical and electronic appliances, jewelry.

The VAT increases to 10% from 9% for the food products, non alcoholic beverages, for the electricity, the natural gas, the stay in a hotel, the restaurants, the cafes, the pastry shops, the public transportation tickets, the household repairs – like plumber, electrical fitter etc.

The low tax of 5% will be imposed for newspapers, magazines, books and theater.

At the same time a war starts between the factory owners and the traders regarding the increase of the VAT. Many companies from all lines of wholesale trade are stating that they do not mind not changing the prices and assume the percentages of the increased tax on their backs. On the other part the producers are backing up and are even stating that a great part of the wholesale traders will blackmail them to put on their bill the difference from the increase of the percentage of the VAT.

The competition between the super markets is increasing with the increase of the VAT – chain stores of discount supermarkets like Lidl and Aldi have announce that they will put on their bill the increase of the VAT, while in the game also entered Carrefour Marinopoulos who promised to assume the difference for all the products for private people and at the same time will continue with the promotion discounts.


Tags: NewsEconomy prices VAT fuels foods
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