The list of consumer goods subject to reduced VAT – in some cases, zero per cent – has been drafted with the relevant decree expected to be published soon.
This is what the Cyprus Commerce Ministry’s Pantelis Panteli told state radio on Thursday morning.
The list cuts VAT from 19 per cent to 5 per cent on certain items, and from 5 per cent to zero per cent on others.
Such items would include milk, bread, baby foods, diapers, as well as other similar consumer products.
Analysts have said measures to counter inflationary pressures is as necessary as ever considering food prices in Cyprus in February this year were up by about 10% compared to February ’22.
And a slight drop in the rate of increases – compared to February ’23 – was recorded in March, which also recorded increases compared to the same month last year.
Indicative of the prevailing situation is demonstrated by official data according to which the prices of bread and cereals this year have risen by 12.6% compared to last year.
As for the price of meat, this rose by 17.8%, seafood by 11.8%, milk, cheese and eggs by 15.2%, olive oil and margarine by 31.1% and sugar by 13.1%.