The economy has to be returned to health, the experts say, but now the Greek government has chosen to tax the healthy consumption habits of the Greek population.
According to a report in the Athens-based newspaper Kathimerini, Greece plans to raise the value added tax on bottled water and juice to 23% from 13%.
The sales tax increase will apparently be applied in September and will affect all bottled waters, fruit and vegetable juices, plus coffees, teas and soft drinks. This is the second VAT rise this year. Sales of bottled water in Greece have dropped by around 20% since VAT was raised to 13% from 9%.
“Because of its contribution to public health, no natural water product should be subject to any VAT or other sales tax,” said Richard Hall in his recently proposed ‘Global protocol for bottled water’. “Water is the most basic and essential ingredient for life. It should be unthinkable for its consumption to be taxed.”
Greece needs a healthy population to speed its economic recovery. Mess with a country’s hydration habits, place barriers to the natural nutritional benefits of fruit and vegetable juice, and you will surely create new problems and costs further down the line. Depress sales of packaged beverages and there will be less taxable profits from the manufacturers. Some may even have to reduce their workforce.
Some governmental decisions seem headless. In this case, it’s all Greek to me.
Bill Bruce is group editorial director of FoodBev Media. You can contact him here
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