The Final Greek Debt Proposal? 9th July 2015

Greece has submitted it’s request for more funding from the European community, and given its own proposals to cover the debt reduction eventually..

9th July 2015

According to Greek media reports, the measures submitted on Thursday include:

Tax rise on shipping company profits.
Scrapping Tax discounts for islands.
Unifying VAT rates at standard 23% (see below)
Phasing out solidarity grant for pensioners by 2019
Defense Spending Cuts of €300m by 2016 ($332m; £216m)

Greek Vat rates:

There are currently three VAT rates (6.5, 13 and 23 percent) in Greece, as well as a 30 percent discount on each for the Aegean islands.
Currently, the VAT rate on Greek hotels is at 6.5 percent and food services are charged with 13 percent.

Greece’s previous proposal for the VAT reform included hotels at the 13 percent rate and restaurants and catering at the 23 percent rate, with the 30 percent reduced VAT rate for the islands to remain untouched.

Current Examples of Greek Vat rates that may have to rise to the normal rate.

6.5% Hotel Accommodation
13.0% Restaurants
13.0% Mineral water
13.0% Pay TV/ cable TV
13.0% Bars and cafés

These are things that people living on a budget may not notice the effects of any changes.

Previous Measures that were rejected by Greece before the referendum, included:

VAT (sales tax): A new system to come in from 1 July, with three rates, aimed at boosting annual revenue by 1% of total output (GDP)
Most goods to be taxed at top rate of 23%, including restaurants and catering and processed foods
Reduced rate of 13% for basic food, electricity, hotels and water
Super-reduced rate of 6% for medicines, books and theatre
End exemptions and eliminate VAT discounts for Greek islands
Create strong disincentives to early retirement
Move retirement age up to 67 by 2022
End Ekas “solidarity” top-up grant that some 200,000 poorer pensioners get – immediate Ekas cut for wealthiest 20% of recipients, and cut completely by 2020
Pensioners’ healthcare contributions to rise to 6%, from 4%

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