2011 ushers in increases in VAT

The advent of 2011 has brought with it price increases in a wide range of staple goods, mainly foods, public transport, cigarettes, entertainment and utilities, while the prices of some 12,000 medications will be reduced and electricity rates for about 1.2 million low income households will also decrease.

The increases will apply to the prices of a sweeping range of products and services on the market and utilities due to the increase of the 11% VAT to 13% as of January 1, 2011. These include food products sold in supermarkets, bakeries, vegetable and fruit shops and meat shops, at restaurants and all eating establishments, cafeterias and sweet/pastry shops, as well as cinema, concert and other event tickets. (ANA-MPA)

Utility bills -- electricity, water, natural gas -- are also being moved to the 13% VAT category, as are public transport tickets -- buses, metro, trains -- and also taxi rates.

However, the 11% VAT rate is reduced to 6.5% for medications and also for tourism services.
 
(ANA-MPA)