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ATHENS – Part of an avalanche of tax hikes and new taxes Prime Minister and Radical Left SYRIZA chief Alexis Tsipras imposed after swearing he wouldn’t, a booming tax on coffee – one of the most precious commodities for Greeks as a partner for their unstoppable smoking – has just accelerated smuggling of the product.
That becomes the assessment of Mario Cerutti, President of the European Coffee Federation (ECF), who said that “Such high taxation strengthens coffee smuggling and reduces the possibilities for investments,” Kathimerini stated.
Coffee is jointly taxed in Greece, beginning primarily with taxes, a Valued Added Tax (VAT) and a unique intake tax that SYRIZA slapped on in a bid to herald revenues, the tax hikes often backfiring, increasing evasion and foremost human beings to turn to smuggled merchandise, which includes bootleg cigarettes bought openly on the road.
Trying to regain preference with the electorate, the SYRIZA authorities created a two-tier tax for coffee products in May – just before elections for the European Parliament and Greek municipalities. As a result, the Leftist candidates took a terrible beating.
The VAT on espresso, tea, and numerous different merchandise turned into the cut from 24 to 13 percent; however, handiest for merchandise offered in shops and supermarkets, now not at espresso stores and eating places, developing a few confusion over the prices for purchasers.
Speaking to newshounds at ECF’s annual popular assembly in Athens, Cerutti stated fowl an individual intake tax was changed into imposed on an espresso in Italy. The VAT became scrapped and said it’d be fairer to have a fluctuating charge based on the market fee of espresso.
Only four other European Union nations have a unique intake tax on coffee, namely Belgium, Croatia, Denmark, and Germany. In Belgium, even though it’s only six percentage, and seven percent in Germany, half the Greek price. The ECF head additionally referred to delays in unique consumption tax rebates in instances wherein espresso re-exported from Greece to other international locations.