PASIKA criticizes VAT reduction implementation and demands price controls

The Pancyprian Association of Leisure Center Owners (PASIKA) issued a statement between October 19 and 20, 2026, expressing strong criticism regarding current government measures intended to address inflation. The association argues that reducing Value Added Tax (VAT) on essential goods is ineffective without strict, consistent mechanisms to monitor and ensure that the price benefits are actually passed on to consumers. According to the organization, failure to enforce price stability makes the current tax policy a "useless gift.

PASIKA highlighted that local businesses in the hospitality sector are facing severe financial pressure due to rising costs for raw materials, energy, rents, and other operational expenses. These escalating costs have reduced the ability of businesses to absorb further economic burdens while keeping prices affordable for their customers. The association emphasizes that supporting these businesses is essential for protecting the livelihoods of employees and the families dependent on the industry.

In addition to calling for rigorous price monitoring, the association has proposed that the government collaborate with local authorities to reduce local taxes and fees impacting the hospitality sector. They maintain that the current situation results in a lack of tangible benefits for the state, citizens, and business owners alike, and they are urging for more substantial, comprehensive support measures to ensure the sustainability of the sector.