Reduction of VAT and contributions: Increases of up to 27 euros in their salaries, cheaper coffee (maybe!)

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Good month with VAT reductions from 24% to 13% on drinks, public transport tickets, ferry and cinema It is unknown if the reduction will go to the consumer. Reduced insurance premiums from today, bring small increases in the salaries of 1.5 million employees.

As of today, the VAT on transport and beverages will be reduced , due to the crisis, a reduction that, however, has an expiration date since it will be valid until October 31st. However, especially in drinks, it is unknown whether this reduction will be transferred to the consumer, as many shopkeepers say that it is extremely difficult for this to happen, since on the one hand they have been hit by the pandemic and want at all costs liquidity in order to succeed in the previous increase. of VAT, in 2015 they had absorbed all the increase and had not transferred it to the consumer.

At the same time, the new reduced insurance contributions for 0.90% are being implemented from today and concern both the employees and the employers. This reduction is expected to lead to salary increases of 2.7 to 27 euros per month

According to what will apply from today, reductions are expected in ticket prices on ferries, airlines, KTEL and public transport, on cinema tickets and on the prices of coffee and soft drinks. This decrease will be due to the fact that VAT is reduced to 13% from 24% today.

Ferry tickets will cost at least 9 percentage points less (which is the reduction from VAT adjustment) from today until the end of October. Corresponding reductions will be possible for airlines as well, as well as for tickets similar to those on intercity buses.

Tickets to the cinema will be reduced to 6.5 euros from 7 euros today. There should be a reduction of 11 percent in the prices of coffee, soft drinks, beverages served, chocolate drinks and herbs.



There is also a reduction in All Incusive packages in hotels, as there are gradual increases in VAT on their price.

For example:

  • Greek coffee from 1.30 euros is reduced to 1.18 euros.
  • In soft drinks 330 ml from 2.50 euros is reduced to 2.28 euros
  • In tea from 1.30 euros it is reduced to 1.18 euros.
New ticket prices


There will be changes in public transport tickets from June 1. According to the OASA. The adjustment in the prices of all OASA transport products (tickets and long-term cards) results from the government’s decision, in the context of broader measures to support citizens and businesses, to reduce the VAT rate to 13% on transport for the period from 1 June to 31 October 2020.

Specifically:

  • Single ticket 1.20 euros.
  • Single reduced 0.50 euros
  • 10 + 1 tickets 12.00 euros.
  • 24 hour ticket 4.10 euros.
  • 5-day ticket 8.20 euros.
  • Tourist ticket 20.00 euros
  • Airport ticket 9.00 euros.
  • Reduced Airport ticket 4.50 euros.
  • Express Airport bus ticket ticket 5.50 euros.
  • Reduced ticket for Express Airport bus lines 2.70 euros.

In terms of monthly and annual cards, the new prices are as follows:

  • 30 days 27 euros.
  • Reduced 30 days 13.50 euros.
  • 30 days + Airport 45.00 euros.
  • 90 days 78.00 euros.
  • 180 days 155.00 euros.
  • 365 days 300.00 euros.

In Thessaloniki, the price of a single ticket is 0.90 euros.
Prices for ferry, train and KTEL tickets will also be reduced, due to the VAT reduction measure.

Contributions


At the end of the month, almost 1.5 million private sector workers will see a small increase in their salaries, as the new insurance contributions come into force today.

The decision of the Ministry of Labor provides for the reduction of contributions by 0.9% – with the ultimate goal of reaching 5% by 2023. The cut is divided into 0.48% for employer bookings and 0.42% for bookings. of the employee.

This means that employees will see small increases from 2.7 to 27 euros in the net amount of salary. For their part, employers will benefit from 3 to 31 euros, thanks to the smaller amount of employer contributions.

“The reduction of insurance contributions will benefit the labor market, as it reduces the non-wage costs in businesses and gives incentives for recruitment,” said recently the Minister of Labor, Giannis Vroutsis, who added:

“At the same time, it comes as a disincentive to delinquent and uninsured criminal behavior. Today, we are catching the thread where we left off in 2014, when at the Ministry of Labor we had again reduced insurance contributions by six points “.

Source: newsit.gr

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