Greece increases taxes on leathergoods
05/03/2010
The Greek government has included leathergoods in the list of products that will now be subjected to value added tax at 21%, an increase of 2% on the previous rate.
The government introduced a series of austerity measures on March 3 in the face of a severe financial crisis in the country. The European Commission insisted the government had to take strong action to reduce its budget deficit this year by 8.7% of GDP. The objective of this is to restore market confidence in the Greek economy and allow the government to borrow more around EUR 40bn. One prominent German politician suggested that the government sell the Parthenon, the famous temple on the Acropolis that dominates the skyline of Athens, for EUR 100 billion.
The government hasn't gone that far, but it said it hoped to raise EUR 1.3 billion by increase sales tax on a list of luxury goods, including leathergoods.
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