6 Greek islands lose sales tax break

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6 Greek islands lose sales tax break
A Greek tattered flag flutters at Agios Prokopios beach on the Greek Aegean island of Naxos, Greece, Oct 1, 2015. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, Yiannis Fragiskos, owner of a souvenir shop, displays a receipt inside his shop at the port of the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a worker takes part in the making process of Graviera local cheese inside a workroom of a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a worker packs a wheel of Graviera local cheese inside a workroom of a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, Yiannis Fragiskos, owner of a souvenir shop, adjusts items inside his shop at the port of the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, tourists make their way past a price list board outside a restaurant on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
Employees arrange items on shelves inside a supermarket on the Greek Aegean island of Naxos, Greece, Thursday Oct. 1, 2015. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a waitress carries dishes past a price list outside a restaurant on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, tourists look at fish on display outside a restaurant on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, tourists make their way outside a souvenir shop at the port of the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
Employees arrange items on shelves inside a supermarket on the Greek Aegean island of Naxos, Greece, Thursday Oct. 1, 2015. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, Yannis Nafpliotis, a local livestock farmer pours water into a can at his farm on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
A wheel of Graviera local cheese stands with a price sign on it inside a refrigerator at a supermarket on the Greek Aegean island of Naxos, Greece, Thursday Oct.1, 2015. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, workers place wheels of Graviera local cheese on shelves inside a workroom of a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a worker stands behind wheels of Graviera local cheese inside a workroom of a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, workers take part in the making process of Graviera local cheese inside a workroom of a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, visitors stand next to Portara, a marble gate which is part of an unfinished temple of Apollo of 530 B.C., on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, fish are on display outside a restaurant on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
A worker carries sun beds past a price list board at Agios Prokopios beach on the Greek Aegean island of Naxos, Greece, Thursday Oct.1, 2015. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a waitress carries dishes outside a restaurant on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a waitress carries dishes inside a restaurant on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a worker packs a wheel of Graviera local cheese inside a workroom of a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a man walks outside a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, a worker makes his way at the premises of a cheese cooperative on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
In this photo taken Sept. 30, 2015, Yannis Nafpliotis, a local livestock farmer pours water into a can at his farm on the Greek Aegean island of Naxos. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
An employee places price signs onto wheels of Graviera local cheese inside a supermarket on the Greek Aegean island of Naxos, Greece, Thursday Oct. 1, 2015. For decades, Greeceâs Aegean islands enjoyed a value added tax rate 30 percent lower than the rest of the country, to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether, but now the islands are losing that benefit as part of creditor-demanded reforms for Greece's third international bailout. (AP Photo/Yorgos Karahalis)
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NAXOS, Greece (AP) — It doesn't have the glitz and glamour of nearby Mykonos, nor Rhodes' steady stream of European charter flights disgorging package tourists. The island of Naxos, with its inland verdant mountains and kilometers of sandy beaches, is considered more a quiet family holiday destination as well as a producer of top agricultural products, including its famed cheese.

Now it is among six Greek islands that are seeing sales tax increase by 30 percent on Thursday — one of a series of creditor-demanded reforms in return for Greece's third international bailout. And locals fear it could hammer their fragile tourism and agricultural industry.

"The VAT increase will definitely have an effect. On the permanent residents initially, and in particular on the pensioners and salaried employees whose purchasing power will be reduced," said Naxos Deputy Mayor Dimitris Lianos. "Of course it will also negatively affect tourism, livestock farming and agricultural production" and inhibit investment on the island.

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For decades, Greece's Aegean islands — many of them very small and remote — had enjoyed a value added tax rate 30 percent lower than the rest of the country, in an effort to offset increased transportation costs and prevent their dwindling permanent populations from deserting them altogether. Now, with Greece's economy hammered by a financial crisis since 2010 and the country under strict supervision by its European creditors, successive governments have been forced to introduce economic reforms — including the abolition of the VAT tax break.

Naxos, Mykonos, Santorini, Rhodes, Paros and Skiathos are the first to lose the benefit. The rest of the more than 100 inhabited Aegean islands will follow in two waves, on June 1, 2016 and January 1, 2017. Consumer taxes for the vast majority of goods goes from 16 percent to 23 percent, while other goods and services such as hotel rooms jump from 5 percent to 13 percent.

"We work for three months in the summer, so for the rest of the time when it's just the locals here, it will definitely affect our turnover, our consumption," said Vaggelis Koutelieris, who owns five supermarkets on Naxos. "This will be a negative for every business."

Vaggelis Katsaras, who owns a 23-room beachside hotel near a popular windsurfing area and is also the vice president of Naxos' hoteliers association, called the VAT increase "a catastrophe."

Hoteliers are thinking of splitting the increase between the consumers and the hotel owners to cushion the blow for clients, he explained, but it is still unclear how it might affect next year's tourism season.

"We're all working to earn money that is only enough for us to pay our obligations," Katsaras said, noting all taxes have skyrocketed and people will now be forced to pre-pay the following year's income tax too.

However, the tourists who were on the island Thursday — a windswept day at the end of the season — appeared generally unperturbed by the imminent change.

Yes, prices will probably go up, said French tourist Marie-Christine Ledernez, visiting from Brittany, "but also it brings the whole country on the same level in a way."

"Perhaps it's also up to us, the clients, to pay too," she said.

Tourism and shipping are Greece's largest industries, and the left-wing government, newly re-elected in September after a politically tumultuous initial seven-month term, has made no secret of its own disagreement with the measure.

"It is clear that this development is a political necessity, and not a choice, for the government, arising from the (bailout) agreement," the Finance Ministry said Monday. It promised to review the VAT increase next year — if it receives more income than expected from a tax evasion crackdown.

Related: Reactions in Greece after the bailout:

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Greece reactions post-bailout
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6 Greek islands lose sales tax break
Members of the Communist-affiliated PAME labor union hold a banner reading ''No to the giant new bailout'' during an anti-austerity rally at Omonia square in Athens, Wednesday, July 15, 2015. Greece has a tentative rescue deal, but relief that it is not falling out of the euro is unlikely to last long: its economy has taken a huge hit. Months of political brinkmanship, uncertainty and bank closures have hurt companies and brought everyday business to a standstill. (AP Photo/Petros Giannakouris)
Members of the Communist-affiliated PAME labor union march during an anti-austerity rally in Athens, Wednesday, July 15, 2015. Greece has a tentative rescue deal, but relief that it is not falling out of the euro is unlikely to last long: its economy has taken a huge hit. Months of political brinkmanship, uncertainty and bank closures have hurt companies and brought everyday business to a standstill. (AP Photo/Petros Giannakouris)
Members of the Communist-affiliated PAME labor union shout slogans during an anti-austerity rally in Athens, Wednesday, July 15, 2015. Greece has a tentative rescue deal, but relief that it is not falling out of the euro is unlikely to last long: its economy has taken a huge hit. Months of political brinkmanship, uncertainty and bank closures have hurt companies and brought everyday business to a standstill. (AP Photo/Petros Giannakouris)
Members of the Communist-affiliated PAME labor union shout slogans during an anti-austerity rally in Athens, Wednesday, July 15, 2015. Greece has a tentative rescue deal, but relief that it is not falling out of the euro is unlikely to last long: its economy has taken a huge hit. Months of political brinkmanship, uncertainty and bank closures have hurt companies and brought everyday business to a standstill. (AP Photo/Petros Giannakouris)
Riot police guard near an anti-austerity protest in Athens, Wednesday, July 15, 2015. Greece has a tentative rescue deal, but relief that it is not falling out of the euro is unlikely to last long: its economy has taken a huge hit. Months of political brinkmanship, uncertainty and bank closures have hurt companies and brought everyday business to a standstill. (AP Photo/Emilio Morenatti)
Demonstrators gather near the Greek Parliament during a rally against the government's agreement with its creditors in Athens, in central Athens, Tuesday, July 14, 2015. The eurozone's top official says it's not easy to find a way to get Greece a short-term cash infusion that will help it meet upcoming debt repayments. (AP Photo/Emilio Morenatti)
Anti-austerity placards, some reading in Greek: "neonazis out", are seen ready to be used ahead of a demonstration in central Athens, Wednesday, July 15, 2015. Greek Prime Minister Alexis Tsipras faced a revolt in his left-wing party and workers' calls for strikes ahead of Wednesday's Parliament vote on a bailout deal meant to prevent the country's economy from collapsing. (AP Photo/Emilio Morenatti)
Anti-austerity demonstrators march along a street during a protest in central Athens, Wednesday, July 15, 2015. Greek Prime Minister Alexis Tsipras faced a revolt in his left-wing party and workers' calls for strikes ahead of Wednesday's Parliament vote on a bailout deal meant to prevent the country's economy from collapsing. (AP Photo/Emilio Morenatti)
People walk in front of the Greek Parliament in central Athens, Tuesday, July 14, 2015. The eurozone's top official says it's not easy to find a way to get Greece a short-term cash infusion that will help it meet upcoming debt repayments. (AP Photo/Emilio Morenatti)
Members of the Communist Party-affiliated trade union PAME demonstrate in central Athens, marking a 24-hours public sector and pharmacists strike on July 15, 2015 against the new package of austerity measures. Greece geared up for a parliamentary vote on draconian reforms demanded by eurozone creditors in exchange for a huge new bailout, just hours after a bombshell report from the International Monetary Fund criticised the deal. AFP PHOTO / ANDREAS SOLARO (Photo credit should read ANDREAS SOLARO/AFP/Getty Images)
Pro-communist supporters demonstrate in front of the finance ministry in central Athens, marking a 24-hours public sector and pharmacists strike on July 15, 2015 against the new package of austerity measures. Greece geared up for a parliamentary vote on draconian reforms demanded by eurozone creditors in exchange for a huge new bailout, just hours after a bombshell report from the International Monetary Fund criticised the deal. AFP PHOTO / ANDREAS SOLARO (Photo credit should read ANDREAS SOLARO/AFP/Getty Images)
A security officer walks along a track at a closed central train station during a 24-hour strike of Greece's railway, in Athens, Wednesday, July 15, 2015. Lawmakers on Wednesday began debating the austerity bill Greece must pass before the country can start talks on a third international bailout, amid growing anger among governing left-wing Syriza party members. (AP Photo/Petros Giannakouris)
A man sits and begs for money, as pedestrians walk by outside of a National Bank, in central Athens, Tuesday, July 14, 2015. The eurozone's top official says it's not easy to find a way to get Greece a short-term cash infusion that will help it meet upcoming debt repayments. (AP Photo/Petros Karadjias)
ATHENS, GREECE - JULY 14: A man begs on the streets of Athens on July 14, 2015 in Athens, Greece. Greek Prime Minister Alexis Tsipras is meeting members of his party to discuss the eurozone bailout deal before a meeting in parliament to begin implementing bailout reforms. (Photo by Christopher Furlong/Getty Images)
A man walks past "Greek Railways'' at the central train station during a 24-hour strike of Greece's railway, in Athens, on Wednesday, July 15, 2015. Lawmakers on Wednesday began debating the austerity bill Greece must pass before the country can start talks on a third international bailout, amid growing anger among governing left-wing Syriza party members. (AP Photo/Petros Giannakouris)
Anti-austerity demonstrators march during a protest in central Athens, Wednesday, July 15, 2015. Greek Prime Minister Alexis Tsipras faced a revolt in his left-wing party and workers' calls for strikes ahead of Wednesday's Parliament vote on a bailout deal meant to prevent the country's economy from collapsing. (AP Photo/Emilio Morenatti)
A protester argues with police while holding a Greek flag on the stairs leading to the Greek Parliament in Athens on July 13, 2015, during an anti-EU demonstration calling for the dismissal of accords between Greece and its European creditors and further austerity measures. Eurozone leaders struck a deal July 13 on a bailout to prevent debt-stricken Greece from crashing out of the euro forcing Athens to push through draconian reforms in a matter of days. AFP PHOTO/ LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)
ATHENS, GREECE - JULY 13: Protesters gather outside the Greek parliament to demonstrate against austerity after an agreement for a third bailout with eurozone leaders on July 13, 2015 in Athens, Greece. The bailout is conditional on Greece passing agreed reforms in parliament by Wednesday which includes streamlining pensions and rasing more raise tax revenue. (Photo by Christopher Furlong/Getty Images)
ATHENS, GREECE - JULY 13: A man sits alone with his thoughts as protesters gather outside the Greek parliament to demonstrate against austerity after an agreement for a third bailout with eurozone leaders on July 13, 2015 in Athens, Greece. The bailout is conditional on Greece passing agreed reforms in parliament by Wednesday which includes streamlining pensions and rasing more raise tax revenue. (Photo by Christopher Furlong/Getty Images)
A woman burns the flag of the ruling party Syriza, surrounded by journalists, in front of the Greek parliament in Athens, during an anti-EU demonstration in Athens calling for a no to any agreement with the creditors on July 13 , 2015. Eurozone leaders struck a deal on a bailout to prevent debt-stricken Greece from crashing out of the euro forcing Athens to push through draconian reforms in a matter of days. AFP PHOTO/ LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)
ATHENS, GREECE - 2015/07/13: Leftists demonstrated in Syntagma square against the new agreement between the Greek government and its international creditors during the Eurogroup Summit that announced new austerity measures that will be imposed. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
ATHENS, GREECE - 2015/07/13: Leftists demonstrated in Syntagma square against the new agreement between the Greek government and its international creditors during the Eurogroup Summit that announced new austerity measures that will be imposed. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
ATHENS, GREECE - 2015/07/13: Leftists demonstrated in Syntagma square against the new agreement between the Greek government and its international creditors during the Eurogroup Summit that announced new austerity measures that will be imposed. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
ATHENS, GREECE - 2015/07/13: Leftists demonstrated in Syntagma square against the new agreement between the Greek government and its international creditors during the Eurogroup Summit that announced new austerity measures that will be imposed. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
ATHENS, GREECE - 2015/07/13: Leftists demonstrated in Syntagma square against the new agreement between the Greek government and its international creditors during the Eurogroup Summit that announced new austerity measures that will be imposed. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
ATHENS, GREECE - JULY 14: A man cleans off the latest batch of anti-austerity graffiti from the walls of the Bank of Greece on July 14, 2015 in Athens, Greece. Greek Prime Minister Alexis Tsipras is meeting members of his party to discuss the eurozone bailout deal before a meeting in parliament to begin implementing bailout reforms. (Photo by Christopher Furlong/Getty Images)
ATHENS, GREECE - 2015/07/13: Leftists demonstrated in Syntagma square against the new agreement between the Greek government and its international creditors during the Eurogroup Summit that announced new austerity measures that will be imposed. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
SYNTAGMA SQUARE, ATHENS, ATTICA, GREECE - 2015/07/13: A protester holds a Greek flag at the anti-austerity protest outside the Greek Parliament. Greeks assembled outside the Greek Parliament under the banner of 'We leave this Europe'. They called for the government to not give into the demands of the Greek creditors for more austerity measures, but rather to leave the Eurozone. (Photo by Michael Debets/Pacific Press/LightRocket via Getty Images)
SYNTAGMA SQUARE, ATHENS, ATTICA, GREECE - 2015/07/13: Protesters pose with a Greek flag next to the Tomb of the Unknown Solider, making a victory sign, at the anti-austerity protest. Greeks assembled outside the Greek Parliament under the banner of 'We leave this Europe'. They called for the government to not give into the demands of the Greek creditors for more austerity measures, but rather to leave the Eurozone. (Photo by Michael Debets/Pacific Press/LightRocket via Getty Images)
SYNTAGMA SQUARE, ATHENS, ATTICA, GREECE - 2015/07/13: A protester holds up a banner at the anti-austerity protest outside the Greek Parliament. The banner reads 'Syriza's Deputies Don't Vote For The New Memorandum, The Only Left Thing Left To Do. #ThisIsACoup #NO-OXI DEMOCRACY NOT FUND ON THIS EUROPE'. Greeks assembled outside the Greek Parliament under the banner of 'We leave this Europe'. They called for the government to not give into the demands of the Greek creditors for more austerity measures, but rather to leave the Eurozone. (Photo by Michael Debets/Pacific Press/LightRocket via Getty Images)
SYNTAGMA SQUARE, ATHENS, ATTICA, GREECE - 2015/07/13: Eleni Louka, a religious activist, rants against the EU and the government at the anti-austerity protest outside the Greek Parliament. Greeks assembled outside the Greek Parliament under the banner of 'We leave this Europe'. They called for the government to not give into the demands of the Greek creditors for more austerity measures, but rather to leave the Eurozone. (Photo by Michael Debets/Pacific Press/LightRocket via Getty Images)
Protesters stand behind a banner in Athens on July 13, 2015 while participating in an anti-EU demonstration calling for the dismissal of accords between Greece and its European creditors and further austerity measures. Eurozone leaders struck a deal July 13 on a bailout to prevent debt-stricken Greece from crashing out of the euro forcing Athens to push through draconian reforms in a matter of days. AFP PHOTO/ LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)
People pass by a graffiti showing a euro sign bleeding, in central Athens on July 14, 2015. Greek Prime Minister Alexis Tsipras was on July 14 holding meetings with his party, faced with the tough task of selling a new bailout deal that requires Athens to push through draconian reforms within two days. AFP PHOTO / ARIS MESSINIS (Photo credit should read ARIS MESSINIS/AFP/Getty Images)
SYNTAGMA SQUARE, ATHENS, ATTICA, GREECE - 2015/07/13: Hundreds of Protesters have come to the anti-austerity protest outside the Greek Parliament. Greeks assembled outside the Greek Parliament under the banner of 'We leave this Europe'. They called for the government to not give into the demands of the Greek creditors for more austerity measures, but rather to leave the Eurozone. (Photo by Michael Debets/Pacific Press/LightRocket via Getty Images)
SYNTAGMA SQUARE, ATHENS, ATTICA, GREECE - 2015/07/13: A protester poses for the press with a Greek flag at the anti-austerity protest on the steps leading up to the Greek Parliament. Riot police officers have secured the steps and watch him. Greeks assembled outside the Greek Parliament under the banner of 'We leave this Europe'. They called for the government to not give into the demands of the Greek creditors for more austerity measures, but rather to leave the Eurozone. (Photo by Michael Debets/Pacific Press/LightRocket via Getty Images)
SYNTAGMA SQUARE, ATHENS, ATTICA, GREECE - 2015/07/13: A riot police officer returns the Greek flag to the protester. Greeks assembled outside the Greek Parliament under the banner of 'We leave this Europe'. They called for the government to not give into the demands of the Greek creditors for more austerity measures, but rather to leave the Eurozone. (Photo by Michael Debets/Pacific Press/LightRocket via Getty Images)
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But for now, islanders have little choice but to implement the increase.

Makers of Naxos' famed hard, salty cheese named graviera, which has earned the European Union's coveted "protected designation of origin" label and is also exported to Germany, France and the Emirates, fret sales will suffer.

Production costs will increase as prices shoot up, explained cheese producer Yiannis Dimitrokalis, who balked at the prospect of passing the hike on to consumers.

"If you increase your prices, you won't be able to sell," said Dimitrokalis as a team of creamery workers behind him pressed curd into a cheesecloth-lined mold for the next batch of graviera. "The consumer won't be able to buy it. So there will be the problem of products being left, not being used and being thrown away. We're between a rock and a hard place."

Farmers say the tax increase on animal feed could make them cull some of their livestock.

"If this continues, gradually we'll reduce our animals too," said farmer Pavlos Nafpliotis, whose small inland farm includes more than a dozen milk cows as well as sheep, geese and hens.

Naxos, locals insisted, had not originally been on the list of the first wave of islands to see the measure implemented, leaving consumers confused and businesses scrambling to get their cash registers upgraded.

Some just couldn't make it in time.

"I will have to use a receipt booklet until I can take the machine to get it fixed," said Ioanna Vassilaki, whose family-run taverna in the mountain village of Filoti relies on the villagers — mostly farmers and construction workers — as well as tourists enjoying nearby hiking trails.

The VAT increase made her despair.

"I'm going to have to raise the prices," she said. "But can the customers afford to pay?"

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