Government Decision Bolsters Household Incomes Amid Rising Energy Costs
The Greek government has decided to extend the reduced Value-Added Tax (VAT) rate on electricity for households until March 31, 2027. The decision was approved during a recent cabinet session as part of continued efforts to ease financial pressure on consumers.
Rationale Behind The Measure
Following the meeting, Finance Minister Makis Keravnos stated that the reduced VAT rate had originally been set to expire on March 31, 2026. However, with electricity prices remaining broadly in line with last year’s levels, the government opted to prolong the measure for an additional year. The move is intended to help households manage their monthly expenses against the backdrop of persistently high energy costs.
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Fiscal Impact And Broader Policy Objectives
The extension is expected to cost the state approximately €40 million. Officials describe it as part of a wider strategy to cushion the impact of energy prices and strengthen disposable income for families. Maintaining the lower VAT rate is seen as a stabilising step during a period of ongoing economic uncertainty.
