Cyprus Consumers Association criticizes ineffective zero VAT measure application

The Cyprus Consumers Association has raised serious concerns regarding the implementation of the zero VAT measure on five additional categories of essential goods, which took effect after midnight on October 12, 2026. The association claims that the government's intervention, announced on September 30 to combat high inflation, has failed to deliver the intended benefits to households due to lack of oversight and proactive price increases by retailers.

According to data collected by the association between September 30 and October 17, 2026, prices for eight products actually increased by one to seven cents in the period leading up to the implementation of the tax relief. On the first day of the zero VAT policy, the average price reduction reached only 3.76%, falling short of the expected 5% target. In some cases, prices for certain products were reported to have risen rather than fallen.

The association has launched a scathing critique against the Consumer Protection Service and relevant ministries, labeling them as incompetent and indifferent. While the Consumer Protection Service reportedly suggested the rollout was smooth, the association maintains that the authorities have failed to ensure the benefit is passed on to the public, urging them to take immediate corrective action to prevent further profiteering.