G. Georgantas: The reduction of VAT on bread products is being examined

The Minister of Rural Development and Food, George Georgantas, left open the possibility of reducing the VAT on bread products from 13% to 6%, as bakers demand in order to keep prices down.

Speaking to r / s Proto Programa, Mr. Georgantas stated that “it is something that the government will consider as a whole”, clarifying that “the government has not committed to specific moves in the near future, but is always above the problem”.

“We are monitoring and will not hesitate to make any intervention needed. VAT on feed and fertilizers has already been reduced to 6%,” he stressed.

According to the minister, a big issue that arises and will affect more developing countries, is the particularly high price of products, as the price per kilogram of wheat was 20 to 22 cents and now goes to 50 cents. “It has doubled, but at the moment we have a stabilization and a slight downward trend, around 10%, because this year’s production is entering the market,” he said.

“Bread has risen by about 20% on average since the pre-war period in Ukraine and bakers have absorbed what they could from the increase in raw materials,” he said.

Asked if the policy of “pricing bread” will be chosen, he countered that this is a matter for the Ministry of Development.

He emphasized that the decision was not a signal of a formal antitrust inquiry into Europe, but said that “for some time now, everything will depend on whether the war in Ukraine continues, whether Russia decides on its own production and of course with the developments on the front of the climate crisis.

“We have absolute sufficiency in Greece and because we have a platform where stocks of specific products are declared – flour, feed, raw materials, etc. – we know that there is a very high sufficiency of months,” said the minister.