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Damage done! 23% VAT causes outflow from Greek private schools

Even if revoked, the 23% VAT increase has alraedy done plenty of damage to private education institutions

Newsroom September 2 09:21

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A statement released by the Radical Left Coalition (SYRIZA) party on Tuesday asked the Greek caretaker government on Tuesday to suspend a measure imposing a 23% VAT hike on private education institutions. The party’s announcement said that Alexis Tsipras would abolish the measure should his party come into power for a second time at the elections on September 20 since its sweeping victory in the January 25 elections.

The European Commission’s statement revealing that it never received a request by the Tsipras government to exclude private education from the 23% hike has spurned a barrage of criticism concerning the party’s negotiations with Greece’s lenders (EC, ECB, IMF, ESM) that resulted in the third bailout package for Greece.

Recent revelations show:

1) SYRIZA had not been “forced” to impose the tax as claimed following the European Commission’s latest statement.

2) SYRIZA’s statement that the VAT hike “was voted on July 15 by the (conservative) New Democracy (main opposition) party which pretends to have just realized it” is erroneous bearing in mind that the measure was voted in at the eleventh hour on July 20 along with other sweeping changes that the government agreed upon in Greece’s 3rd bailout.

Members of the Private Education Operators Federation of Greece (OIELE) on Tuesday implored for the measure to be revoked.

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Too late for some

Michalopouleion private school in Piraeus survived the German occupation but is closing down after 83 years of operation as a result of the negative impact of the 23% VAT hike to private educational institutions. The school was founded in 1931 by Yioula Michalopoulou-Plafoutzi and was an esteemed instituted that educated thousands of people in Piraeus, many of which distinguished themselves in their professional lives. In recent years, Michalopouleion included a nursery, primary, junior and senior high school that will all close down as a result of the problems caused by the increased tax. Over 60 families will be immediately impacted by the loss of jobs.

MICH

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