12.2.13
With some of the memorandum measures proving to be inefficient in increasing revenue, the Ministry of Finances is seeking alternative ways to achieve its targets. One of the possible solutions would be to repeal the VAT hike in foodstuffs, from 13% to 23%, which is considered to have contributed significantly in the sharp drop in consumption.
Another problem with the hike, according to the Ministry, is that it increased instances where receipts and invoices are not issued. In essence, the tax hike made tax evasion advantageous, since the Ministries mechanisms for dealing with tax evasion are next to useless.
The General Accounting Office has formed a team to examine the measures. Their report will be complete at the end of February, so that the findings can back up any Greek arguments in the upcoming negotiations with the Troika.
