ACROSS-THE-BOARD IMPLEMENTATION OF REDUCED VAT RATES

UNITED FRONT FOR THE ACROSS-THE-BOARD IMPLEMENTATION OF REDUCED VAT RATES ON ALL ISLANDS OF THE SOUTH AEGEAN REGION

Rhodes, 07.09.2025

The Prime Minister’s recent announcement at the Thessaloniki International Fair regarding a 30% VAT reduction for border islands with populations under 20,000 excludes Rhodes and the entire Cyclades island group from the measure.

Clearly, the government fails to grasp the necessity of applying reduced VAT rates across the island region, continuing to define “border areas” solely in geographic terms — i.e., which islands are closest to the national borders.

However, when it comes to island territories, the concept of being a border area should also consider:

• The distance from major urban centers and state infrastructure,
   
• The higher cost of transport, energy, and basic goods,
   
• The limited healthcare, education, and social welfare infrastructure,
   
• The seasonality of tourism, which determines the incomes of thousands of families.
   

From this perspective, every island is a border area, regardless of its geographical position. By excluding Rhodes and the Cyclades, the government denies this reality and, with its ongoing commitment to a “divide and conquer” strategy, effectively:

• Creates new inequalities, by dividing islanders into two classes of citizens:
   
  • Those on smaller islands deemed “worthy of relief,”
     
  • And those on larger islands like Rhodes and the Cyclades, who are left to bear the full burden of rising costs on their own.
     
• Ignores the contribution of our islands to the national economy.
   
  • Rhodes and many Cycladic islands are leaders in Greek tourism,
     
  • They feed state revenues and sustain thousands of jobs,
     
  • Instead of being supported, they are punished.
     
• Undermines the principle of islandness.
   
  • The EU acknowledges the increased needs and higher living costs of all island areas.
     
  • Yet the government arbitrarily excludes those islands with larger populations and greater infrastructure demands.
     

Despite initial expectations, the election of the South Aegean Regional Governor as President of the Union of Greek Regions (ENPE) has not, so far, proven enough to shift the hostile policy of the New Democracy government toward island Greece. This makes it clear that the struggle continues to secure fair and rightful demands for our island communities.

For this reason, we call on:

• All factions of the Regional Council,
   
• The entire South Aegean Regional Association of Municipalities (PED),
   
• And the MPs of the Dodecanese and Cyclades,
   

to form a united front in pursuit of the horizontal application of reduced VAT rates to every island in the South Aegean Region — without exception.

Island Greece cannot endure further discrimination.
Unity and collective determination are essential to achieve justice and equality for all islands of the South Aegean.