There is no proof anywhere that if VAT is reduced across the board in some goods the reduction will end up benefiting consumers, government spokesman Yiannis Economou told Real FM radio on Thursday.
In addition, he said, “Whoever calls for a reduction in the special tax for fuel or VAT in some foods must also show up and explain how they will replace these billions of euros missing from state revenues. Will they borrow at the current market interest rates? Will they introduce new taxes? Or raise the ENFIA property tax? Will they abolish some permanent tax reductions, as we did in the past? Or reintroduce the solidarity fee?”
The spokesman also said that “any measure this government has taken, has been satisfactorily effective in reducing the effect of the crisis on people’s lives – we never said we would obliterate it entirely.”
Referring to European Union/Eurogroup Directives and international experience, Economou said that support measures must be targeted to be more effective, since funds are not infinite. At the same time, he said, unemployment did not drop by 5.5 to 6 points just because the government provided subsidies, but because it reduced taxes, insurance contributions, and increased investments to the point of leading Europe in that respect.
The spokesman also referred to the key visit of the prime minister to Greek ethnic communities in Albania, to the importance of keeping communication channels open with Turkey, and he also criticized main opposition SYRIZA for voting against the 2023 state budget expenditures.