ATHENS, Greece (PNN) - September 1, 2011 - Tax evasion in Greece threatened to take organized form on Thursday when café and restaurant owners refused to pay a 10-point VAT rise, as a deep recession clashes with the government’s increasingly desperate search for revenue.
The steep rise in value added tax on the hospitality sector from 13%- 23% is part of a package of fiscal measures agreed to in return for the country’s second financial rescue by European Union partners.
But for many of Greece’s ubiquitous cafés and souvlaki stands, which have already seen a 20-40% decline in business in the past year as customers rein in spending, the VAT rise is the final straw.