Greek FinMin: No VAT hike for luxury islands!

Finance Minister Yanis Varoufakis denied reports of an imminent VAT hike for Greece’s luxury islands as speculated by the press in recent days.

“There is no such discussion,” said Varoufakis when speaking to reporters outside Parliament on Thursday. However, he did not rule out the possibility of a tax on luxury accommodation, clarifying that this did not include three-star hotels. He predicted that there would be minimal reactions to such a measure, noting that someone now playing 1,000 euros per night for accommodation at the current rate would instead have to pay euros.

Two ‘key’ issues – known as ‘red lines’ – where the government has pledged not to back down are pension cuts and the social security system. Varoufakis said that discussions on these issues won’t be broached until June as part of talks on a ‘grand agreement’ with the creditors.