A question to the Minister of Finance was submitted by the MP for the Dodecanese, Manos Konsolas, regarding the government’s plan regarding the reinstatement of the reduced VAT rates in Rhodes.
“Rhodes is not only the image of prosperity, large hotels and tourism. The big and real picture is the small and medium-sized businesses, the professionals who face a survival problem due to the high cost of transporting goods and services, but also the need to transform and support the competitiveness of the local economy.
The local community, businessmen, professionals and employees believe that the right of our country to impose reduced VAT rates on island regions should also apply to Rhodes”, points out Manos Konsolas in a question he submitted regarding the possibility, at a later date, of applying reduced VAT rates to Rhodes.
In his question to the Minister of National Economy and Finance, Manos Konsolas emphasizes that: “the conditions in relation to 2015 have changed, the expansion of electronic transactions has led to an increase in VAT revenues and this is also reflected in Rhodes. The fiscal cost of extending the validity of reduced VAT rates to Rhodes should be determined in order to know the required fiscal space required for the implementation of the measure in Rhodes as well”, while also requesting the government’s planning regarding the reinstatement of reduced VAT rates to Rhodes.
In his statement, Manos Konsolas states: “The purpose of this parliamentary initiative of mine is to demonstrate that Rhodes continues to claim but also to hear facts and figures.
In addition to the fiscal cost of reinstating the reduced VAT rates, there are other elements such as the enormous contribution of Rhodes to public revenues with income tax, VAT, the durability fee, receipts from archaeological sites, fees and taxes from ports and airports.”
The full text of Mr. Consola’s question to the Minister of National Economy and Finance…
“Mr. Minister,
The reinstatement of reduced VAT rates in the Dodecanese islands, which is the most sensitive, nationally and demographically, region in the Aegean, is a first and important step.
However, in order for this step to be complete, it must also include Rhodes, which at this stage was not included in the islands where reduced VAT rates will apply.
The local community, businessmen, professionals and employees believe that the right of our country to impose reduced VAT rates in the island regions must also apply to Rhodes.
Rhodes is not only the image of prosperity, large hotels and tourism. The big and real picture is the small and medium-sized businesses, the professionals who face survival problems due to the high cost of transporting goods and services, but also the need to transform and support the competitiveness of the local economy.
The conditions in relation to 2015 have changed, the expansion of electronic transactions has led to an increase in VAT revenues and this is also reflected in Rhodes. The fiscal cost of extending the validity of reduced VAT rates to Rhodes should be determined in order to know the required fiscal space required for the implementation of the measure in Rhodes as well.
Following the above
The Chief Minister is asked
1. What is the government’s plan regarding the reinstatement of reduced VAT rates in Rhodes and what is the fiscal cost?
2. What is the contribution of Rhodes to public revenues and specifically with income tax, VAT, the durability fee, receipts from archaeological sites as well as fees and taxes on air and ferry tickets?
