Cash-Strapped Greeks Hit by Higher Sales Tax

July 1, 2010 - 6:05 AM
Prices of consumer goods and services increased overnight in Greece, as a new sales tax hike takes effect in an effort to boost government finances.
Athens, Greece (AP) - Prices of consumer goods and services increased overnight in Greece, as a new sales tax hike takes effect in an effort to boost government finances.
 
The center-left government imposed the increase in Value Added Tax, or VAT, from 21 to 23 percent. The increase took effect Thursday, prompting an immediate rise in gas prices and highway tolls.
 
It is the second VAT increase this year, following hike from 19 percent in March.
 
Trading associations say they will try to limit price increases despite the tax hike.