Six Greek islands lose tax privileges

Greece's finance ministry announced on 28 September 2015 that six popular tourist destinations were the first to to lose their preferential tax rates, following the bailout agreement between the government and its creditors.

Mykonos, Santorini, Rhodes, Naxos, Paros and Skiathos were scheduled to have from 1 October equivalent rates to the rest of the country. The remaining islands would follow in 2016 and 2017, still subject to revision by the government depending on the revenues' performance.

Greek islands - many of them without airports and with a tenuous maritime link to the mainland in winter - had until now enjoyed a 30% sales tax break.

Greek Report, 29.09.15: Greece to Abolish Lower VAT Rate Oct 1 on Six Popular Islands http://greece.greekreporter.com/2015/09/29/greece-to-abolish-lower-vat-rate-oct-1-on-six-popular-islands/

Deutsche Welle, 29.09.15: Complying with creditors, Greece increases island VAT http://dw.com/p/1GfBQ

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