Holidaymakers in Greece face higher costs under plans to hike taxes on its islands and restaurants as part of the country’s efforts to avoid defaulting on its debt.
The Aegean islands are in line to have special tax exemptions abolished under reform plans submitted by the Greek government on Monday as it bids to stay in the eurozone.
This could leave visitors to destinations such as Mykonos and Santorini facing 30% higher VAT bills for goods and services, The Telegraph reported.
Visitors are also likely to be hit by plans to raise VAT on restaurants from 13% to the highest rate of 23%.
Greek islands have benefited from historically lower levels of consumption tax.
But plans to reverse these privileges as part of a revenue-raising drive to keep the country afloat, are being met with fierce resistance inside the government.
The Greek National Tourism Organisation said: “Discussions on changes to VAT are still underway as negotiations have not yet concluded.
“Greece is a very good value destination and this will still be the case what ever the outcome of the discussions.”
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