Mykonos businessman joins Skiathos mayor in contesting legality of VAT hike

A Mykonos businessman on Thursday filed a lawsuit with the COuncil of State (CoS), Greece’s supreme court, calling for the cancellation of the VAT hike on Greek islands. The businessman states that the ministerial decision calling for the gradual abolition of the low VAT rate for islands in the Aegean is contrary to European law.

The higher VAT rate, lifted from 6% to 23%, on the islands of Rhodes, Santorini, Myonos, Paros, Naxos and Skiathos at the start of October is viewed as being contrary to laws of equality because it affects only a limited category of tax payers while imposing higher taxes on the residents of the six islands in question.
This case follows a decision by the municipal council of Skiathos to contest the VAT hike on Wednesday. Skiathos Mayr Dimitris Prevezanos says that the state is providing the islanders with substandard services compared to the taxes being collected.