Monday, January 3, 2011

New VAT increase brings price hikes

The coming of the new year brought in effect price increases in a wide range of staple goods, including food, public transport, cigarettes, entertainment and utilities.
 
Rises will result in the prices of a sweeping range of products and services on the market and utilities due to the increase of the 11 percent VAT to 13 percent as of January 1, 2011. These include food products sold in supermarkets, bakeries, vegetable and fruit shops and meat shops, at restaurants and all eating establishments, cafeterias and sweet/pastry shops, as well as cinema, concert and other events tickets.
 
Increases in commuter ticket prices have yet to be announced, but, according to sources at the Infrastructure, Transports and Networks ministry, the one euro ticket for public transport means in the wider Athens area will go up by 30% and will cost 1.30 euros, while increases are also expected for the unlimited travel passes (cards).
 
Substantial increases of up to 70 percent are expected in the Hellenic Rail (Ose) ticket prices, in the context of Ose's rationale to equate its prices with those of the Ktel inter-state buses, while increases in the Proastiakos suburban railway prices will be smaller.
 
Those bent on driving themselves around have a few days extension on their vehicle tax payments, until the 5th of January.
 
Utility bills, like electricity, water and natural gas, are also being moved to the 13 percent VAT category, as are taxi rates.
 
 
 
 
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