Greek Prime Minister Kyriakos Mitsotakis left open the possibility of tax reductions in transportation during the unveiling ceremony on Wednesday, of a brand new Airbus A320neo by the country’s national carrier AEGEAN.
Speaking during the event, Mitsotakis said he would proceed with a reduction of VAT on transport provided fiscal conditions allowed it.
VAT cuts on transport would mean cheaper tickets and lower fees for the transport of goods allowing at the same time space for competitive policies.
“I am very well aware that high VAT on transport also burdens the cost of our tourism product,” the Greek prime minister said.
“Once a budgetary space is found, you can be sure that it will be reduced so that our tourism product becomes even more competitive,” he said.
The prime minister underlined the importance of investments towards boosting public revenue and strengthening the Greek economy as well as the government’s commitment to moving ahead with privatizations.
“Today, we are celebrating a purely private and 100 percent Greek investment… clearly reflecting the government’s stance on development. We will support any bold initiative, freeing it from bureaucracy and stifling taxation,” he said.
Mitsotakis went on to refer to the progress Greece is making in aviation and air transport with the launch of works on the Kastelli airport on Crete, the completion of upgrades on 14 regional airports by Fraport Greece, and the interest by nine suitors for the privatization of Athens International Airport.
“Greece is moving more and more dynamically in the field of air transport, strengthening its position on the map of global tourism,” he said.
AEGEAN Airlines President Eftychios Vassilakis called for improved public services that will “justify fees paid by companies and passengers”.
“During the crisis, gradual airport concessions created the necessary foundation for the improvement of airport infrastructure but other public services declined. At the same time however, the fees paid by airlines and their passengers increased. This trend must be reversed, and this is a matter of will, not of funding,” he said.