The households pay the ‘marble’, one way or another, for the high VAT We apply in Greece is the conclusion of a study of the KEPE.
The KEPE says is that when the state increases VAT, businesses do not always fully pass this increase to the final prices, which is called “undermine”, but ultimately the households are the ones that raise the weight.
When VAT increases, for example from 13% to 24%, many businesses, especially small or non -competitive, do not raise their prices proportionally. They are trying to absorb part of the burden so as not to lose customers. This means that the cost does not pass the consumer entirely through the price.
However, this has limits. When businesses cannot absorb another, the charge passes to the customer either directly or indirectly, with reduced quality of service, shrinking supply or shift the cost elsewhere. The result is that, even if the price does not go up as long as one expects, the consumer still pays the marble.
Particularly critical are the categories of basic goods or services, such as food or catering, where the business has little room to “keep” the increase. There, the passage becomes more immediate, and the increase in VAT results in the consumer’s pocket, with all the social consequences.
The issue is more important if one considers that VAT is a passive passive tax, you pay it every time you consume, whether you are rich or poor. When the tax is increasing and the market does not “react” equivalently, vulnerable groups are disproportionate.
It is worth noting that, according to official figures, the state’s revenue from VAT was increased in 2024, reaching 23.6 billion euros, mainly due to the rise in consumption and the expansion of electronic payments.
It is recalled that the Commission also made a warning intervention, calling on the Greek government to align its legislation with the EU’s single VAT rules within two months. Greece is accused of not sufficiently implemented Community Directive 2006/112/EC, which provides for clear restrictions on the use of exceptions and reduced rates. In the event of non -compliance, the case may be referred to the EU Court.