The Regional Governor of South Aegean, the Deputy Governor of Kalymnos and the Local Committee of New Democracy are misleading islanders with communication games over VAT
In light of the recent statements and celebrations by the Regional Governor of South Aegean, the Deputy Governor of Kalymnos, and the Local Committee of New Democracy in Kalymnos regarding the reinstatement of reduced VAT rates on the islands, we find it necessary to highlight several important points that are either not mentioned or are misrepresented.
Island residents deserve clear answers and real solutions — not just words crafted for public impression.
What is actually true:
- The Samaras government had already agreed with the troika to implement uniform VAT across the entire country, including the islands, but did not manage to implement it due to the fall of the ND-PASOK government.
- The SYRIZA government managed to postpone the implementation of that agreement until 2017 and secured reduced VAT rates for five islands, due to migration flows and the presence of hosting facilities.
- At the start of the Transport Equivalent Measure, then-Prime Minister Alexis Tsipras had stated his intention for the Transport Equivalent and reduced VAT rates to coexist on the islands. However, this commitment was not realized due to the 2019 elections.
- Since 2022, inflation has been left unchecked by the ND government, severely affecting Greek households.
- In 2021, the ECOFIN Council approved the use of reduced or zero VAT rates and VAT exemptions for certain categories of goods and services meeting basic needs on EU islands.
- Recently, at the Thessaloniki International Fair (TIF), the Prime Minister claimed ignorance of EU Directives 2020/285 and 2022/542, which allow small businesses to sell without charging VAT and reduce their compliance obligations. These directives also allow broader use of reduced or zero VAT rates for essential products like food, medicine, and medical-use items.
- Greece is now facing infringement proceedings (case INFR 2025/0041/42) by the European Commission, due to non-alignment of national laws with these directives, and risks financial penalties.
- At the same time, during TIF, Prime Minister Kyriakos Mitsotakis announced a measure that should have been implemented long ago — a move that highlights once again the government’s delays and is likely a response to avoid sanctions from the EU for not implementing the ECOFIN directive.
- Worse still, the measure excludes VAT exemptions for essential needs of islanders, and it creates discriminatory exclusions by leaving out islands with populations over 20,000, as if Rhodes, for example, doesn’t face the same challenges as smaller islands (like underfunded health structures and high transportation costs).
Once again, the government continues to mock citizens by irrationally excluding half the country from a tax relief measure — under the pretense of offering “incentives” to remote areas — while deepening inequality within Greece.
No one should underestimate the memory and conscience of the Greek people.
They do not forget — and they will not tolerate being misled with empty announcements and superficial celebration.
Island communities can no longer afford delays. They demand real solutions — now.
Press Office
North Dodecanese Regional Committee
