Wed Jul 17, 2013 6:51am EDT
ATHENS, July 17 (Reuters) - Greece will lower value-added tax on restaurants this summer in a bid to boost consumption and tax revenues in its ailing economy, Prime Minister Antonis Samaras said on Wednesday.
Kept afloat by a 240 billion-euro bailout ($315 billion) by the EU and IMF, Athens has imposed a series of unpopular austerity measures including tax rises and wage cuts in exchange for further funds, worsening a recession now in its sixth year.
"Despite the difficulties, important and significant things are taking place in our country," Samaras said in a televised address, announcing that VAT would be cut to 13 percent from 23 percent starting on August 1.
"For months I have taken on the first big tax cut in Greece. We knew it wasn't easy but we knew that it could and should have happened," he said. Athens had raised VAT on restaurants to 23 percent in September 2011.
Samaras said the cut would help curb tax evasion, a major problem in the country and one of the reasons it slid into a debt crisis in 2009, but warned that if tax evasion persisted VAT would be reverted to 23 percent.
"If this experiment succeeds, I'm certain that further cuts to unbearable taxes will follow," Samaras said. ($1 = 0.7612 euros)
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