Cyprus Consumers Association criticizes implementation of zero VAT on essential goods

On October 11, 2026, the Cyprus government implemented a zero VAT rate on five additional categories of essential goods to combat inflation. While the Consumer Protection Service stated the rollout proceeded smoothly, the Cyprus Consumers Association has challenged this assessment, claiming the actual impact was less significant than anticipated.

Monitoring conducted by the Association between September 30 and October 17 revealed that prices dropped by an average of only 3.76% on the first day of implementation, falling short of the expected 5% reduction. Data showed that the decrease reached 4.3% by October 13 and 4.5% by October 14. Furthermore, the Association reported that prices for eight specific products rose by one to seven cents in the days leading up to the measure, with an additional three products experiencing price increases of two to four cents in the period following the implementation.

This initiative follows the Ministry of Finance's September 30 announcement of support measures for citizens. Currently, the Association continues to highlight discrepancies between government claims and real-market price data, questioning the efficacy of the monitoring process.