Greek Government cuts VAT in Eastern Aegean Islands to support local economy
Prime Minister Kyriakos Mitsotakis announced a 30% reduction in Value Added Tax (VAT) for the Eastern Aegean islands, aiming to support the regions economically, demographically, and in terms of infrastructure development. The announcement was made during his opening speech at the 89th Selanik International Fair.
Mitsotakis emphasized the challenges of living in border regions, noting that the measure will apply to dozens of islands, including Semadirek, Limni, and Meis, with populations under 20,000. He stated:
“We owe it to the islanders who keep the Greek flag flying at the edge of the Aegean. This VAT reduction is part of our plan to support them against the rising cost of living.”
The Prime Minister also said that tax incentives for defense industry investments would be doubled, potentially reaching €150 million, while payments for 2026 defense programs are expected to total €2.3 billion. He added that 2,000 new homes will be built on military-owned land in Athens, Selanik, and Patra, with 25% allocated to armed forces personnel and the rest to citizens who previously did not own a home.
Meanwhile, protests took place in Thessaloniki during Mitsotakis’ speech, organized by the ADEDY and GSSE labor unions and the PAME union affiliated with the Communist Party. Demonstrators protested government economic policies, commemorated the 57 victims of the February 2023 Tembi train disaster, and some carried Palestinian flags, chanting for freedom in Gaza. Similar demonstrations occurred in Athens and other cities across the country.
