The third bailout agreement for Greece sees the special VAT rate on Aegean islands to gradually phase out as of October 1. It will initially be abolished on the islands of Paros, Mykonos, Santorini, Naxos, Syros, Tinos and Milos.

Finance Minister Euclid Tsakalotos and Alternate Finance Ministers George Chouliarakis and Tryfon Alexiadis discussed the issue in a meeting that had the participation of Katerina Savvaidou, the secretary general of Public Revenue.

Soruces state that a legisative act for the implementation of the measure will be drafted by next Monday. This means that VAT rates will increase from 5 percent, 9 percent and 16 percent to 6 percent, 13 percent and 23 percent as for the rest of Greece.