Cyprus Consumers Association criticizes effectiveness of zero VAT measure

The Cyprus Consumers Association (CCA) has raised serious concerns regarding the implementation of the zero VAT policy on five additional categories of essential goods, which went into effect on October 12, 2026. Following an announcement by the Ministry of Finance on September 30, 2026, the CCA monitored price trends across 49 supermarkets. Their data suggests that the measure failed to provide the expected relief, as the average price reduction on the first day was only 3.76%, falling short of the anticipated 5% decrease.

Furthermore, the association reported that prices for eight products were increased by one to seven cents in the period between the initial announcement on September 30 and the implementation date of October 11. The CCA has accused the Consumer Protection Service and relevant ministries of incompetence and failure to enforce proper oversight, claiming that the lack of effective monitoring has allowed retailers to absorb some of the benefits rather than passing them on to citizens. Marios Drousiotis, head of the CCA, criticized the state for prioritizing the optics of the policy over ensuring it reaches consumers. In response, Minister of Energy Michalis Damianis stated that checks are being conducted both before and after the implementation to monitor price fluctuations.