The Radical Left Coalition (SYRIZA) government announced the first six islands wehre a discounted VAT rate will be axed on October 1, 2015. This means taht residents of Rhodes, Santorini, Mykonos, Naxos, Paros and Skiathos will have their VAT rates lifted to 6%, 13% and 23% from the current rates at 4%, 9% and 16%.

It still remains to be seen whether Greece’s creditors will be satisfied with the move, bearing in mind that it will be applied to a quarter of the Aegean (180,000 islanders).

The bailout agreement foresees that other islands will have VAT rates hiked on June 1, 2016, so that they are aligned to those of the rest of Greece. The third hike for Greek islands will come on January 1, 2017, and will include the most isolated islands.

In an effort to appease taxpayers, the government announced that VAT increases will be re-examined in 2016 in the hope that they may be reduced.

The government announced that new measures will be implemented to ease the tax burden who need it the most.