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Sales tax hike takes effect

Prices of consumer goods and services have risen overnight in Greece, as a new sales tax hike takes effect in an effort to boost government finances.

ATHENS — Prices of consumer goods and services have risen overnight in Greece, as a new sales tax hike takes effect in an effort to boost government finances.

The centre-left government imposed the increase in Value Added Tax, or VAT, from 21 to 23 per cent.

The increase took effect Thursday, prompting an immediate rise in gas prices and highway tolls.

It is the second VAT increase this year, following hike from 19 per cent in March.

Trading associations say they will try to limit price increases despite the tax hike.