The Greek government is considering reducing the value added tax on bread and oil with the idea of taxing these products at 6 percent, according to the Greek newspaper Money Review, noting that it is now 13 percent.
In a few days, due to rising prices for raw materials and electricity, the price of bread, which is the main product in the consumer basket of Greek citizens, rose by 20 percent, the newspaper said. However, calculations show that the reduction in VAT on bread will cost the state budget 150 million euros, and there are fears that this measure may not affect its price.
A government meeting chaired by Prime Minister Kyriakos Mitsotakis will discuss possible shortages of goods due to the war in Ukraine and additional measures to help households.
According to preliminary forecasts, inflation in Greece in March was almost 8 percent, the newspaper said.
Imports of corn from Bulgaria, Romania and even South America will be discussed at today’s government meeting, the newspaper “Ethnos”. Mitsotakis’ cabinet is considering alternative supplies of goods that cannot currently come from Russia and Ukraine. Proposals also on imports of oil from Argentina and wheat from European countries and Canada.