Greek VAT policy and taxation debates

Prime Minister Kyriakos Mitsotakis announced a plan to reduce the Value Added Tax (VAT) on period products from 24% to 13% starting January 1, 2027. Describing the move as an act of “social and gender justice,” the Prime Minister also requested the examination of pilot programs to provide free hygiene products in schools within disadvantaged areas to combat “period poverty.”

In response to the economic climate, the SYRIZA-Progressive Alliance has proposed different tax relief measures. Finance spokesperson Nikos Pappas has called on the government to return fiscal surpluses to citizens through a six month zero VAT policy on essential goods. This proposal follows budget execution data showing that VAT revenues increased by 2.5 billion euros compared to the same period last year, while projected primary surpluses are significantly higher than original targets.

The proposed amendment includes zero VAT for six months, with a possible six month extension, on items such as milk, dairy, meat, eggs, fruits, vegetables, bakery products, edible oils, medicines, and baby products. Pappas emphasized that the policy must be accompanied by strict controls to ensure tax relief is reflected in final consumer prices. Additionally, SYRIZA is calling for a permanent 30% VAT reduction for Greek islands, in accordance with relevant European legislation, and is demanding transparency regarding how the government utilizes increased tax revenues.