Extra Tax Measure Sparks Reaction in Greek Hotel Industry

Greece’s hoteliers are up in arms over a brand new oblique tax that’s a part of the structural reforms required as a part of the nation’s debt take care of its lenders.

Following the promise made by Prime Minister Alexis Tsipras that the so-called “occupancy tax” will take impact in 2018, the nation’s tourism professionals had been knowledgeable {that a} new invoice (that features oblique levies amounting to 1.8 billion euros by way of 2018) tabled in Parliament on Wednesday incorporates clauses on the adjustment of the Single Property Tax (ENFIA) charges to the brand new goal values of properties.

Hoteliers perceive that, in response to the invoice’s Article 50, they now lose their preliminary ENFIA tax exemption and will likely be charged with a further tax of a 0.1 p.c fee on their properties.

In separate statements on Thursday, the Greek Tourism Confederation (SETE), the Hellenic Chamber of Accommodations and the Hellenic Federation of Hoteliers, warned that Greek companies will inevitably shut their doorways and a major lack of jobs will likely be recorded, taking an eventual toll on tourism.

Referring amongst others to the so-called “occupancy tax” to take impact in 2018 and the hike in value-added tax (VAT) from 23 p.c to 24 p.c, SETE underlined that the following two years are projected to be “extraordinarily troublesome” for Greece’s tourism enterprises.

“These (levies) are added to a variety of different taxes on services that instantly and not directly have an effect on the vacationer, elevating the price of the journey package deal and diminishing the competitiveness of tourism”, the confederation mentioned.

On its half, the Hellenic Federation of Hoteliers described the measures as “unreasonable” and mentioned they intention to eradicate hundreds of resort enterprises throughout the nation.

The Hellenic Chamber of Accommodations despatched a letter to the Minister of Finance Euclid Tsakalotos and harassed that the additional tax “is unfair and improper” and can have devastating penalties on the viability of resort companies but in addition on the financial system and jobs. The chamber known as for the minister’s private intervention for the extra ENFIA tax to be scrapped.