Zero VAT brings retail prices down about 5 per cent on selected goods, service says
Cyprus’ Consumer Protection Service says sampled goods cost about 5 per cent less after zero VAT took effect, but warns that prices could rise in the months ahead.
Nicosia, Cyprus. Retail prices for selected goods have fallen by about 5 per cent following the introduction of zero VAT, the commerce ministry’s Consumer Protection Service said on Thursday. The measure covers five product categories and forms part of government assistance aimed at easing living costs.
Price checks across five categories
The service said its assessment used samples of selected products in each category, drawing on checks at large supermarkets and data from the e-kalathi platform.
The decline was recorded after the zero-VAT rate took effect on October 12 for bread, milk, coffee, sugar and baby foods. The measure is due to remain in place until May 31, 2027.
Service cautions against assuming stable prices
The findings represent a market snapshot rather than an assurance that prices will stay at current levels, the service said. It warned that the tax measure does not rule out increases over the coming months.
Prices also depend on production and supply expenses, raw material and transport costs, and competitive conditions in the market, it added.
The service said it would maintain its monitoring of retail prices.
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