00:00The clatter of glasses, the sound of coffee making, and the hum of conversation,
00:06the usual soundtrack of a busy day at a bistro bar in Athens.
00:11But a new ruling by the Supreme Court here has struck a sour note for many workers,
00:17such as Georgios Pervikas, who has spent most of his working life in the industry.
00:23Taxing our tips will make our lives more difficult.
00:27The new measures will make us seriously reconsider whether we'll continue working in the hospitality industry.
00:34It makes us have second thoughts. It complicates our life.
00:38A situation already made more challenging by the high cost of living and the persistent high inflation.
00:45My quality of life would change even more.
00:48I'm at a point where I have to think twice about whether I can purchase or buy something for my home or pay the rent.
00:54You can't live in Greece just on a basic salary.
00:59Following the ruling, the Greek government says it's considering allowing workers to keep up to $300 tax-free.
01:07But the Supreme Court ruling will still mean workers will have to pay insurance and health care contributions on anything over $300.
01:17The ruling has sparked a heated debate, but the government isn't backing down, saying the law shouldn't surprise.
01:24A tax on tips law has been in place for decades, but it's only been recently enforced.
01:31It's interesting that people think we are implementing a new law and taxing tips.
01:37That's not the case. The law has existed since 1994.
01:41We are creating a monthly tax exemption for up to 300 euros.
01:46The government is pushing back, saying that these measures that are in place are not about taxing tips, but to create a fairer system.
01:55With electronic payments now in place, authorities say that they can track those hidden salaries that slip through the cracks.
02:04And they make sure that everybody will pay their share.
02:08And they insist that this system that is in place is already working.
02:13Electronic systems now reveal hidden taxable income, not just tips.
02:20These measures have led to an 11% VAT revenue increase over a billion euros, which previously went undeclared.
02:32While the government celebrates higher revenues and a crackdown on hidden incomes,
02:37Georgios Perdikas is concentrating on different numbers,
02:41wondering how he can continue to pay his bills if he continues in his lifelong profession.
02:48Evangelos Tsipsas for CGTN, Athens.
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