The Piraeus Chamber of Commerce and Industry (PCCI), led by President Vassilis Korkidis, has submitted a set of policy proposals to the Greek government and food retail businesses. The recommendations come amid the recent abolition of the cap on gross profit margins—a move the PCCI says necessitates a new regulatory framework for the market.
A Three-Pronged Proposal
The first proposal calls for a special tax framework to incentivize food retailers and supermarket chains to invest in domestic production. Under this plan, companies would be allowed to form a tax-exempt reserve—calculated as a percentage of their corporate profits—dedicated specifically to such investments.
The second proposal recommends simplifying VAT compliance by replacing the current three-tier VAT rate structure with two fixed rates. These would be based on the sector’s actual weighted average VAT collection rate—estimated by the PCCI at approximately 11% of the net value of goods sold by supermarkets.
The third proposal urges supermarket chains to voluntarily participate in the July–August summer sales period—not as a commercial tactic, but as an act of social responsibility toward consumers.
Strong Economic Role and Steady Growth
According to the PCCI, organized food retail remains a cornerstone of the Greek economy. Domestic demand has stayed resilient even during periods of economic uncertainty. In 2025, supermarket chain turnover reached €16.24 billion—a 7.1% increase over 2024. For the first half of 2026, turnover is estimated between €8.7 billion and €8.9 billion, reflecting annual growth of 7%–8%.
The sector also serves as one of the most important channels for indirect tax collection. The PCCI estimates the industry’s effective weighted VAT rate lies between 11% and 12%. VAT revenues from supermarket chains are projected at €1.80–1.90 billion for 2025—and around €1.02 billion for the first half of 2026. Notably, nearly 25% of total VAT revenue generated from private consumption stems from purchases of food and essential goods.
Consumer Resilience Amid Inflation
Despite persistent inflationary pressures in recent years, Greek consumers have not cut back on essential purchases. Instead, they’ve adapted—increasingly opting for private-label products and taking advantage of store promotions and discounts.