Greece VAT rate cut to 22% 2021
The Greek government has committed to reduce its standard VAT rate by 2% from 24% to 22% by 2021.
It last raised its VAT rate from 23% to 24% in June 2016. Previously, during the height of the financial crisis, it had increased the rate twice in 2010 from 19% to 23%.
The latest announcement comes as the country exits its 8-year Euro financial crisis bailout programme with the International Monetary Fund, the European Central Bank and the European Union. During the crisis, the country saw its gross domestic product shrink by almost a third. The country is now ahead of its key fiscal targets agreed with its lenders.
The governing Syriza party is behind in the polls, and faces elections next year. In addition to the VAT cut, it also made promises on cutting corporate tax from 29% to 25%. There is also an offer in a reduction in the highly-unpopular annual property tax.
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