SYRIZA MPs ask for abolition of new law for 23 pct VAT on private tuition services

Gazzetta team 31 Ιουλίου 2015 - 17:47

Warning that a newly introduced 23 pct VAT rate on private tuition services will lead to lost jobs, business closures and reduction in revenues, 23 SYRIZA MPs on Friday asked that the recently passed legislation be reversed.

The measure, affecting businesses such as foreign language schools and those preparing children for nationwide university entrance exams, raises VAT from zero to 23 pct.

The MPs said that the tax hike, coming after more than five years of recession, would force these businesses to either raise fees, shed staff or further cut wages, which were currently at around 3.5 euros an hour. It would also drive many in the sector to offer private lessons at home, increasing the black economy and reducing revenues.

The deputies also pointed to the danger of increasing class barriers in education, as more and more households with seriously depressed incomes would find tuition services for their children out of reach.

Lastly, they pointed out that the measure was incompatible with community laws passed in 2006, which exempted entities providing education services from VAT.