The Municipal Council of Kythnos issued a protest resolution expressing its strong opposition to the island’s exemption from the reintroduction of reduced VAT rates. The special regime, which had been implemented in 2015 and concerned VAT reductions, was recently abolished, which has caused serious economic and social consequences for the permanent residents of Kythnos.
According to the resolution, this abolition led to a dramatic increase in the cost of living, with the prices of basic goods and fuel making the daily life of residents particularly difficult. At the same time, there is a decrease in consumption even in periods of high tourist demand, a phenomenon that affects local businesses and leads to economic decline of the island’s business fabric. In addition, productive sectors, such as livestock farming and fishing, are facing serious difficulties, as professionals are unable to cover the fixed costs of their activities.
Kythnos, with an actual population of less than 1,400 inhabitants, has been called upon to face a series of additional challenges in recent years. The coastal isolation has become more intense, with connections during the winter months being maintained only with the port of Lavrio and not at all with Piraeus, significantly increasing the cost of travel for permanent residents to the mainland. Serious problems are also recorded in the health sector, where residents are without specialized doctors and a pediatrician, while school units of all levels are facing vacancies due to the high cost of living for teachers.
The Municipal Council calls for the immediate inclusion of Kythnos in the reduced VAT rates, in the spirit of compliance with the European directive and with respect for the concept of “islandness” as formulated in national legislation. The local authorities estimate that the implementation of the measure will restore the competitiveness of businesses, strengthen the purchasing power of residents, including low-income pensioners, and contribute to the upgrading of the island’s tourism product, which has been painstakingly built over decades.
