Greek tax receipts surge as inflation lifts VAT and consumption duties
From 2021 to the 2026 budget, Greece’s VAT and special consumption tax revenues are projected to rise sharply, driven largely by higher prices during the inflationary period.
Data from the Independent Authority for Public Revenue indicate that Greece’s tax intake from value-added tax (VAT) and special consumption taxes (SCT) will climb markedly between 2021 and the 2026 fiscal plan. VAT revenues rose from €17.431 billion in 2021 to about €21.4 billion in 2022, €23.4 billion in 2023, surpassed €26 billion in 2024, reached roughly €27.8 billion in 2025 and are projected at €29.307 billion for 2026.
SCT receipts grew from €6.659 billion in 2021 to €7.456 billion in the 2026 budget, with fuel taxes and tobacco duties contributing the most. While the government cites economic growth, tourism, higher employment and anti-evasion measures, the analysis highlights that inflation-driven price hikes on goods and services automatically expanded the VAT base, accounting for the majority of the revenue boost.
Why it matters
Higher tax revenues reflect how inflation directly increases government income, affecting fiscal policy and public finances.
In this story
