ATHENS, Feb. 20 (Xinhua) -- Greeks drink less coffee after the introduction of a special consumption tax on coffee in 2017 as part of measures to raise more revenues to deal with the debt crisis, according to a latest survey presented by the Greek Coffee Association.
Retail prices increased by 10 to 30 percent, depending on the type of coffee, and consumption declined by 1.9 percent in 2018 from 2017, Greek newspaper Kathimerini (Daily) reported on Wednesday citing the survey.
In the first year after the implementation of the new tax which amounts to about 2 to 4 euros (2.3 to 4.5 U.S. dollars) per kilo of coffee, the drop was estimated at 6.8 percent, while a further drop is projected for this year.
Association officials asked for the tax to be abolished and said that coffee shops, which are typically very small enterprises, have seen their turnover fall 10-15 percent, which has forced some to shut down.
Grigoris Armenakos, a second-generation coffee roaster in Athens, has told Xinhua that in 2015, coffee cost nine euros per kilo, but due to the VAT rate increase from 13 to 24 percent in 2016 and due to the new special consumption tax, the price reached 14 euros per kilo.
In addition, due to the new tax, smuggling is flourishing depriving the state coffers of at least 12 million euros per year, according to the Association.
The annual revenues from coffee consumption in Greece are estimated at about one billion euros per year.
According to a recent survey conducted by Greek polling firm ALCO for local magazine "Snack and Coffee", 42 percent of Greeks drinks on average two cups of coffee every day, 32 percent one cup, and 20 percent of respondents said they enjoy at least three cups of coffee per day.
