Greece’s tourism sector, especially places serving food and beverages, are set to get relief with the decision to decrease Value Added Tax (VAT).
The conservative New Democracy government of Greece decided to drop VAT from 24 to 13 per cent as part of a series of stimulus measures aimed at helping businesses.
VAT for hotels may also be cut from 13 to 6 per cent in an effort to give them a boost.
Insurance contributions will be reduced by 0.90 per cent as of 1 June. The reduction is expected to lead to salary increases of 2.7-27 euros per month.
Ticket prices on ferries, airlines, KTEL buses and public transport will also apply from today.
As Greece slowly opens up its economy, there will also be new rules for businesses which need to meet strict hygiene protocols with limits to customers and tables kept further apart.
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The government of Greek Prime Minister Kyriakos Mitsotakis also plans to use 32 billion euros in grants and loans from the EU for large-scale investments in the green economy, digitalisation and modernisation of public administration.