The Municipal Council of Paros unanimously approved a resolution in favor of the extension of the reduced VAT rate regime to the islands of the Cyclades and Rhodes, asking the State to fully utilize the possibilities offered by European legislation.
As noted in the resolution, the measure of reduced VAT rates has historically been the most important tool of island policy, linked to the strengthening of the competitiveness and sustainability of local economies. At the same time, it is considered an expression of the principle of “equal opportunities” that was already established by the Treaty of Rome, on which the European Union was built.
The Municipal Council of Paros bases its request on specific legal and political arguments. Among them, the European Directive 2022/542, which gives member states the possibility to apply reduced VAT rates to island regions, regardless of whether they are considered peripheral, as well as article 101 par. 4 of the Greek Constitution, which requires the adoption of special measures for island regions due to their particular circumstances.
The difficulties of the islands
The resolution makes extensive reference to the difficulties faced by the islands: the increased cost of transport and living, the seasonality of tourism, the limited economic options and the need to maintain social cohesion. As it is underlined, the reinstatement of reduced VAT rates in the Cyclades will act as a substantial relief measure for households and businesses, reducing the cost of living, strengthening competitiveness and contributing to the sustainable development of local societies.
Paros – Source: discovergreece
Especially for Paros, the Municipal Council points out that the high cost of housing, the dependence on coastal and air transport and the seasonality of tourist activity make it necessary to establish reduced VAT rates. The measure, as noted, will support not only households and tourist businesses, but also agricultural and fishing production, strengthening the cohesion of the local fabric.
The resolution follows corresponding decisions taken by both the Regional Council of the South Aegean and the Regional Union of Municipalities of the South Aegean, which last September advocated the immediate reinstatement of the reduced VAT rate regime on all islands of the Region.
The Paros Municipal Council declares its firm commitment to the universal application of the 30% reduced VAT rates on all the islands of the South Aegean, where the measure was in force until its abolition in 2015. At the same time, it calls on the government to proceed immediately with its reinstatement, requesting the support of all local bodies, professional associations and residents, as well as the assistance of the Central Union of Municipalities of Greece in the just request of the islands.
The resolution will be forwarded to the Prime Minister, the competent Ministers of Finance and Shipping and Island Policy, the Cyclades MPs, as well as the local government institutions, with the aim of forming a united front for the implementation of a policy of tax justice and real island equality.
