The Minister of National Defense and president of the Independent Greeks Panos Kammenos expressed his opposition to the abolition of the discounted VAT rates applicable on the islands, in Sunday’s government council meeting.
According to Mega Channel, the government was preparing a plan to abolish the discount on six large islands – such as Myconos, Santorini and Rhodes – with the discounted rate being maintained on the other islands.
The junior coalition government partner however was categorically against such a possibility, claiming that the preservation of the discounted VAT rate for the islands was an election pledge he will not abandon.
Mr. Kammenos, however, noted that he would accept equivalent alternatives, such as raising the luxury tax. He warned that his MPs would vote against any changes to the taxation framework on the islands.
