Greek PM Backs F&B Services with New Support

Tax breaks and business rent exemption are among support measures announced by Greek Prime Minister Kyriakos Mitsotakis on Friday to support food and beverage (F&B) service providers who have remained closed for months due to Covid-19 restrictions.

Mitsotakis announced four measures during a meeting with sector representatives, adding that “reductions in taxes and contributions made so far are permanent tax reductions”.

More specifically, according to the PM, F&B services providers will not be required to pay rents for March and they will not be required to pay employee salaries, which are currently covered under a government furlough support program. Also, reduced VAT will be charged on coffee and non-alcoholic beverages through to September 30 – this measure will soon be extended to transport, theater, cinema and to package tourism – and the government will cover businesses’ fixed costs.

The measures apply to enterprises in the F&B sector impacted by the coronavirus pandemic.

Greek Prime Minister Kyriakos Mitsotakis discussing with F&B sector representatives. Photo Source: primeminister.gr

“The government supports healthy entrepreneurship. The F&B industry is obviously a vital sector both in terms of employment and competitiveness and of promoting the country abroad because it is directly related to our tourism product,” he said, adding that so far the government has allocated almost 2 billion euros in support to the sector.

According to Mitsotakis, the F&B sector recorded a total turnover of 6.4 billion euros in 2019, which fell by 35 percent to 4.2 billion euros in 2020, “undoubtedly a very significant reduction” he said during the meeting which was also attended by finance and development ministers Christos Staikouras and Adonis Georgiadis, respectively.