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Greek Islands Travel
Greek islands travelTax shock for Greek Islands

Abolishing tax relief on the Greek islands appears to have backfired with VAT revenues from tourism dropping by 40% in just five months, according to some reports. Holiday visitors to the Greek Islands used to enjoy lower prices thanks to low VAT rates for many businesses, notably hotels and restaurants. The low VAT rate was allowed in order to compensate for the extra costs of shipping in goods such as food, drinks and other consumables out to the islands. But the Greek government abolished the relief on Mykonos, Santorini, Paros, Corfu, Zante and Kefalonia in June last year and have recently rolled out the VAT rise across another dozen Greek islands. VAT relief was abolished to raise more cash to help pay off Greece's international debts. But latest figures show holiday island VA...

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