ATHENS: The Greece Government may impose a new tax on holidaymakers this year that choose to spend their vacation on very expensive island destinations and reside in luxurious hotels as Greece Travel Pages (GTP) website reports.
Greece Mega Channel said on Saturday that the proposal for the special ‘luxury tax’ may be included in negotiations with the country’s lenders in a bid to reduce pressures to axe the special tax status of the Greece islands. The VAT on dozens of Aegean islands – except Crete – is currently reduced by 30% against the current rate that applies for the rest of Greece. This regime was imposed to offset the high cost of transporting goods and to boost tourism development.