Zero VAT on Key Consumer Goods Spurs 5% Price Drop in Cyprus

Since October 12, Cyprus introduced zero VAT on five essential consumer categories—bread, milk, coffee, sugar, and baby foods—as part of a cost‑of‑living relief package. The Consumer Protection Service, which sampled large supermarkets and the e‑kalathi platform, reported a 5% reduction in retail prices for these items. The measure is set to remain in force until May 31, 2027. While the initial price decline is clear, the service cautions that future price stability depends on production, supply, raw material costs, transport, and market competition. It will continue monitoring the market to assess ongoing impacts.