A recent Supreme Court decision in Greece has stirred controversy by classifying tips as taxable income, requiring service workers to pay taxes on gratuities they receive. 

While the government insists the move is about fairness and transparency, many workers say it could significantly impact their livelihoods.

In a bustling Athens bistro, amid the familiar sounds of clinking glasses and steaming coffee machines, hospitality worker Georgios Perdikas fears the new taxation will add to the strain of low wages and rising living costs upon him and others. 

"Taxing our tips will make our lives more difficult from now on," said Perdikas, who has spent decades in the hospitality industry. 

He told CGTN: "The main reason a Greek works in hospitality today is tips because the salary is low. This makes us have second thoughts about continuing in this industry. It complicates our lives and our quality of life."

Already struggling with high inflation and soaring expenses, Perdikas describes the tipping tax as yet another blow. "I'm at a point where I have to think twice about whether I can make a purchase, buy something for my home, or pay the rent. You can't live in Greece on just a basic salary. I might need to take on a second job or even learn a third," he explained.

In response to the backlash, the Greek government is considering allowing workers to keep up to $300 in tips per month tax-free. However, anything beyond that would still be subject to insurance and healthcare contributions. Officials maintain that the law on taxing tips has existed since 1994 but is only now being enforced.

"It's interesting that people think we are implementing a new law and taxing tips," a Ministry of Finance representative told CGTN. "That's not the case. The law has existed for decades. We are actually creating a monthly tax exemption for up to $300."

With the rise of electronic payment systems, the government says it's better equipped to track previously hidden income, ensuring a fair tax system for all. 

According to Ministry of National Economy and Finance press spokesperson Omiros Tsapalos: "Electronic systems now reveal hidden taxable income, not just tips. These measures have led to an 11 percent VAT revenue increase, over a billion euros, which previously went undeclared."

While the government welcomes increased revenue and a crackdown on unreported earnings, workers like Perdikas remain worried. As he juggles the rising cost of living and now-taxed tips, he wonders how long he can sustain his profession.