Ditching the imminent stayover tax, retaining reduced VAT rates and exemption from property taxes are the measures Deputy Kos Mayor Euterpe Papachristou proposed in order to keep the island’s economy above water.
Addressing a meeting this week attended by local government bodies and the Independent Authority for Public Revenue, Papachristou suggested measures that will keep Kos’ economy on track following the July 21 earthquake and the refugee inflows.
Implementing a stayover tax on Kos will impact tourism and the local economy “particularly at a time when we are making herculean efforts to mitigate the negative consequences of migration on tourism and to restore our image as a tourist destination”, she said.
The stayover tax will be implemented as of January 1, 2018 and hoteliers across Greece have repeatedly warned of the impact on the competitiveness of the tourism product. The levy — ranging from 50 cents to four euros per room — will apply to hotels and furnished rooms/apartments for rent based on the number of overnight stays and category.
Meanwhile, Papachristou, who is responsible for the municipality’s finances, called on government officials to provide data with regard to the estimated gains from the implementation of new VAT rates.