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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 boom tax on coffee – one of the most precious commodities for Greeks as a partner for his or her 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 primary wit taxes, a Valued Added Tax (VAT) and a unique intake tax that SYRIZA slapped on in a bid to herald revenues, the tax hikes backfiring often, increasing evasion and foremost human beings to turn to smuggled merchandise, which includes bootleg cigarettes bought openly on the road.
Trying to regain prefer with the electorate, the SYRIZA authorities created a two-tier tax for coffee products in May – just beforehand of elections for the European Parliament and Greek municipalities in which 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 that happened in Athens, Cerutti stated fowl an individual intake tax 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 become re-exported from Greece to other international locations.