Bitter Brew: Coffee Tax Pushes Prices Higher for Greeks
In Greece, prices for Robusta coffee are up 49.7% and Arabica for up 35.9%, while businesses are teetering on the edge of sustainability
Coffee, the daily companion of millions of Greeks, has been caught in the eye of a financial storm for years. Since 2017, when the Special Consumption Tax (EFC) was imposed, the price of a cup of coffee has steadily climbed, hitting both businesses and consumers alike.
Now, the Hellenic Coffee Association has taken action, sending a letter to the Prime Minister’s General Secretariat calling for the abolition—or at the very least, a significant reduction—of the tax. According to the Association, the EFC doesn’t just burden coffee businesses; it directly impacts every citizen who finds their daily cup increasingly expensive.
A Tax That Fuels Inflation
The timing couldn’t be worse. Global coffee prices have surged to their highest levels in 50 years, driven by climate change, reduced harvests in key producing countries, geopolitical tensions, and new EU trade restrictions. This perfect storm has already pushed costs to extreme levels.
Adding the EFC on top of this has only made the situation more suffocating. The Association warns that the tax is intensifying inflationary pressures, hitting households that are already struggling with rising food costs.
Looking Abroad: Denmark’s Example
Other countries, meanwhile, are easing the burden on citizens. Denmark recently abolished taxes on coffee and chocolate after domestic coffee prices jumped 35.5% in just one year. The move offered immediate relief to households and highlighted a potential model for Greece.
The Hellenic Coffee Association urges the Greek government to consider similar measures, especially ahead of announcements expected at the Thessaloniki International Fair.
A Daily Ritual at Risk
In Greece, coffee is more than a beverage—it’s a cultural staple, a social ritual, and a daily comfort. Yet, with prices for Robusta coffee up 49.7% and Arabica up 35.9%, businesses are teetering on the edge of sustainability. Rising energy costs, wages, and rents further strain the sector. Without policy intervention, the simple pleasure of a daily cup of coffee could soon become a luxury.
Source: tovima.com
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