06:15 GMT +313 December 2019
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    Greece Bailout

    VAT Increase on Variety of Goods Comes Into Effect in Greece on June 1

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    A new bailout loans bill came into effect in Greece Wednesday, local media reported.

    ATHENS (Sputnik) — A new bill, coordinated with international creditors in return for more bailout loans, and enacting, in particular, an increase of value added tax (VAT) for a variety of goods and services, came into effect in Greece Wednesday, local media reported.

    According the Greek Reporter news portal, the increase of the country's VAT by 1 percent from 23 to 24 percent has forced the growth of prices for such goods as pasta, rice, canned goods, coffee, tea, margarine, ice cream, soft drinks, juices and some others.

    The prices for public transport services, taxi, restaurants, communal payments and other services have been also increased.

    Greece signed a deal with its creditors, the International Monetary Fund (IMF) and the European Central Bank (ECB) and some eurozone nations, in July 2015 for a third bailout package worth 86 billion euros ($96 billion) in exchange for unpopular austerity reforms that include pension cuts and tax hikes.

    Earlier in May, Eurogroup finance ministers agreed on a 10.3 billion-euro ($11.5 billion) aid package, after the new bill, prescribing new taxation regulation, had been approved by the Greek parliament


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