Proof To the Prime Minister’s General Secretariat, Kyriakou Mitsotakisdid the Hellenic Coffee with letter sent to the General Secretariat and object the Special Tax. On the occasion of the forthcoming government announcements at the Thessaloniki International Exhibition, the Hellenic Coffee Union calls for the state to include the abolition of the abolition or at least a significant reduction in special coffee tax.

According to the Hellenic Association of Coffee, this tax, which was imposed on January 1, 2017, has significantly burdened businesses in the industry and, consequently, consumers, at a time when the prolonged inflationary crisis in food is affecting households. This burden negatively affects the consumer price index and intensifies inflationary pressures.

At the same time, International coffee prices have been raised At the highest levels of the last 50 years, due to climate change, reduced crops in the main productive countries and because of geopolitical tensions. Factors that also influence and shape historically high prices are the institutionalization of the new EU Regulation on the EU (EUDR) for protection from deforestation, the implementation of trade duties and the increased demand from new markets such as China. Only in the last month, the price of Arabica coffee variety increased by 35.86% on the New York Stock Exchange, while the Robusta coffee variety raised 49.72% in the London Organized Stock Exchange.

These developments have led to coffee prices in the Greek market at historically high levels, creating an explosive mixture of costs that are further burdened by energy invoices, wage costs and renting rents. Businesses in the industry are now confronted with serious viability challenges, without being able to compete with equally similar companies abroad.

Indicative is the example of Denmark, which has just recently announced the abolition of taxes in coffee and chocolate to relieve households of accuracy, given the increase in coffee price by 35.5% over one year.

In this context, the Greek Coffee Union calls on the government to follow the same example as that of Denmark and proceed with the abolition or significant reduction of EFK in coffee, and include this measure in TIF announcements. Such a move will, according to the VET, have a direct and substantial impact on citizens, making their daily habit more accessible and contributing to inflation.