Greece reports €5.77 billion primary surplus driven by VAT

Greece has recorded a primary surplus of €5.77 billion, driven largely by significant increases in tax revenues. During the seven-month period, net tax revenues exceeded targets by nearly €1 billion.

Value Added Tax (VAT) has been a primary driver of this growth, with revenues increasing by approximately €2 billion compared to the previous year. This surge is attributed to economic growth, tourism, electronic transactions, and reduced tax evasion, though price increases on essential goods have also contributed to higher collections.

Personal income taxes exceeded targets by €346 million, while corporate income taxes exceeded targets by €20 million. While these surpluses have contributed to credit rating upgrades from agencies such as Fitch and are essential for debt reduction, the revenue growth highlights the impact of inflation and the regressive nature of VAT on low-income earners.