Cyprus retail prices fall 5% after zero VAT on essentials
The Consumer Protection Service says prices for bread, milk, coffee, sugar and baby foods have dropped since zero VAT took effect on October 12.
Prices in Cypriot shops for five everyday product groups have come down by roughly 5 per cent since the tax break kicked in, according to the Consumer Protection Service of the ministry of commerce, as reported by Cyprus Mail.
The measure, which removes VAT from bread, milk, coffee, sugar and baby foods, started on October 12 and forms part of a wider government package aimed at easing living costs. It is set to stay in place until May 31, 2027.
Inspections covered selected items in each category, with data drawn from large supermarkets and the e-kalathi platform, the service said, adding that it will keep watching how the market behaves.
What it means for residents
The saving is small but real on the staples that fill most shopping baskets, and it is expected to hold for well over a year. Still, the service cautions that zero VAT is no promise of stable prices — production, transport and competition all feed into what you pay at the till.
- Check the receipt. A 5 per cent cut on a loaf, a carton of milk or a jar of coffee is easy to miss, so compare prices against what you paid before mid-October.
- Plan around the deadline. The relief runs to May 31, 2027; after that, expect these items to be taxed again unless the measure is extended.
- Report anomalies. If a shop appears to have absorbed the tax cut without lowering shelf prices, the service is the body that handles such complaints.
This text is written from the source article and is not a translation of it.
