Nicosia: Minister of Finance, Makis Keravnos, announced on Wednesday the extension of the zero VAT rate on basic goods, such as baby milk, baby and adult diapers, hygiene products for women, and fruits and vegetables until December 2026.
According to Cyprus News Agency, the announcement came after the Council of Ministers’ meeting, which approved a proposal from the Ministry of Finance. Keravnos explained that this proposal involves extending the zero value added tax rate, originally set to expire in December 2025, to ensure it remains in effect until December 2026 on specific essential products.
These products include baby milk, baby and adult diapers, hygiene products for women, as well as fresh or frozen fruits and vegetables. Keravnos emphasized that maintaining a zero VAT rate on these items directly reduces expenses for vulnerable households, increases their disposable income, and improves their standard of living.
Keravnos further noted that even though inflation is projected to be zero for 2025, the government considers the measure crucial for supporting vulnerable groups and citizens in the country, and thus intends to uphold it.