Tax-revenue boost in Greece

The tobacco sector has provided a welcome short-term boost to Greece’s Finance Ministry, according to a story by Thanos Tsiros for the Kathimerini newspaper.

In the first six months of the year, state coffers received an additional €350 million because of an announcement of a hike in the special tobacco consumption tax due to be introduced in January next year.

Normally, tax hikes are not announced in advance.

When rumors about an upcoming increase in the tax were confirmed in May, tobacco companies started increasing their stocks.

Market observers were reported to have said that the companies had secured enough stocks for between three and five months, depending on the policy of each company and its liquidity.

This means that the rise in tax takings this year will be effectively deducted from next year’s revenues.