George Nikitiadis (PASOK MP for the Dodecanese) has submitted a new Parliamentary Question to the Minister of National Economy and Finance, Kyriakos Pierrakakis, demanding the reintroduction of reduced VAT rates for the Dodecanese islands.
Nikitiadis emphasizes that the government can no longer justify its inaction with fiscal concerns, especially when it reports a €11.4 billion surplus for 2024 and a €1.2 billion primary surplus for the first half of 2025. He cites data from the Dodecanese Chamber of Commerce, noting the estimated cost of the measure is only €80 million—an amount he argues is manageable and would yield economic and social returns.
He also stresses the legal obligation to implement this measure, referring to the European Commission’s reasoned opinion sent to Greece on July 17, 2025, for failing to transpose Directive (EU) 2022/542. The directive allows for reduced VAT rates in geographically or economically disadvantaged regions.
Nikitiadis recalls that since 1947, the Dodecanese has had a special tax regime, and the 30% VAT reduction introduced by PASOK in 1986 was not a privilege but a right—compensating for island isolation, high living costs, and seasonal employment.
The Rhodes Hotel Association also backed this demand, highlighting the strategic importance of the VAT reduction for local economies, business competitiveness, and national cohesion, especially in light of recent wildfires and high transport costs.
In his question to the Minister, Nikitiadis asks:
- Whether the government intends to reinstate the reduced VAT rates in the Dodecanese.
- What the Ministry’s strategy is for incorporating the EU directive into national law, and whether it will include special provisions for islands and tourist areas.
