PASIKA warns VAT cut useless without price monitoring
The association says the VAT reduction on basic items will miss its goal without strict price monitoring, arguing that the intended relief could evaporate before reaching shoppers.
PASIKA urges the government to adopt broader steps to ease inflation, protect households and keep businesses afloat amid rising costs.
It points to climbing prices for raw materials, energy, rent and other operating expenses that strain operators and limit their capacity to keep entry fees low for visitors. “Supporting businesses is not only about entrepreneurs, but also about the employees and families who depend on them,” the group says.
The body adds that any tax cut must be paired with effective price checks; otherwise, the benefit will not be felt. “As long as a stable price after VAT deduction is not ensured for the duration of the measure, it is a pointless gift,” they warn. “The state does not benefit since it loses this tax revenue, citizens do not benefit, hospitality entrepreneurs do not benefit, on the contrary, while continuing to pay increased prices, they also lose the right to claim the tax back since theoretically they do not pay it. Those who clearly benefit are merchants who, while collecting increased prices, do not remit the tax since here too, theoretically, they do not collect it.”
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According to the association, the revenues the state loses from this measure could instead support businesses accordingly. “Measures must be judged by their actual results and not merely by announcements. The state must also cooperate with local authorities for a drastic reduction in fees and other charges paid by businesses and citizens.”
General Secretary Fanos Leventis proposes revisiting the current rent-control scheme, suggesting it be broadened to include newer properties that fall outside existing limits.
He notes that the presidential decree governing allowable rent hikes is issued biennially and could be adjusted using clear criteria that balance tenant protection with genuine maintenance costs. “The goal should not be to discourage new investments, but to find a balance between a reasonable investment return and the need to protect households and businesses from excessive increases. This specific proposal reflects a personal position and not an official institutional decision of PASIKA,” he adds.
