FinMin Varoufakis denied reports of an imminent VAT hike for Greece’s islands

Finance Minister Yanis Varoufakis denied reports of an imminent VAT hike for Greece’s islands, in statements to reporters outside Parliament on Thursday.

“There is no such discussion,” Varoufakis said, though he did not rule out the possibility of a tax on luxury accommodation, clarifying that this did not include three-star hotels. He predicted that there would be minimal reactions to such a measure, noting that someone now playing 1,000 euros a night for an overnight stay will instead have to pay 1,040 euros.

Regarding the two ‘key’ issues where the government has pledged not to back down – namely pension cuts and the social insurance system – Varoufakis said that these will be discussed in June as part of a ‘grand agreement’ with the creditors.