Negotiations between Greece and the Brussels Group will resume on Tuesday with value added tax and pension reforms as the main topics. The Greek team will propose three VAT rates of 23%, 14% and 7%. Creditors, on the other hand, suggest two rates at 10% and 23%. Athens proposes 7% VAT on food staples, medicine and books, 14% on food, utility bills and clothing, and 23% on cars, alcohol, tobacco and electronics. It is estimated that the changes would increase tax revenues between 500 million euros to one billion, thereby closing a big part of the 2015 fiscal gap. Regarding pension reforms, the Greek team will propose the abolition of early retirement but will refuse any cuts in supplementary pensions that pertain to about 200,000 pensioners.
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