Greece plans to double its budget cushion for natural disasters by increasing a tax on luxury hotel accommodation, but it will stick to its state reform and fiscally prudent drive, Prime Minister Kyriakos Mitsotakis said on Saturday. 

 

The government will fund the increase by raising an existing hospitality levy by between 1 euro and 6 euros per night, he said. 

 

 

In his keynote speech at the annual Thessaloniki International Fair, which was postponed by a week due to the disasters caused the Daniel Storm, Mitsotakis outlined reforms across the state. 

 

He reiterated his pre-election pledge that public sector wages would be increased while the minimum monthly wage of 780 euros would be raised again from April 2024.

 

Mitsotakis, however, underlined that the country should remain fiscally prudent and any state support or increases should not jeopardise the target for a primary surplus of 0.7% of GDP this year. 

 

“My speech today will not include new, pompous benefits," Mitsotakis said. 

 

The battle against tax evasion and profiteering due to price hikes were emphasised by the Prime Minister. 

 

In specific, Mitsotakis that those who rent three or more properties on short-term lease platforms will have to pay-value added tax and all taxes paid by the hotel. 

 

He also said financial transaction tax of 0.2% would be slashed by half, while the special taxation on Greek bonds will be abolished.