Shock! Increases in electricity and food – 14% VAT!

One will give for a time, the other will take the government, and not for a time, but over time…
The new shock comes in (where else?) from the IMF throws at the table is still a measure. The increase in the minimum rates of VAT that relates to essentials.
Is for years known to the partners and lenders, but the Fund does not have any confidence in the announcements of the Greek government for the limitation of expenditure, etc. Require measures of direct performance, and these are usually horizontal and are related to reductions in wages and pensions or increase taxes.
Now we’re talking about the second. An increase in taxes and yes to products and services of daily use, the so-called basics that as now they have less VAT if in the last negotiation was hundreds of those who entered in the general rate of 24%.
This time, the IMF requires measures of the order of 500 million euro. How will you find that money?
The answer comes from VAT which is currently at 13%. The increase will be a unit, and these products will be charged with 14%, which will mean back to back increases in fresh products, electricity, and services such as overnight stays in hotels.