Impact of zero VAT in Cyprus
The Consumer Protection Service of Cyprus is keeping a close eye on how the zero VAT (value-added tax) rate impacts prices at stores.
They’ve been checking 88 different products in nine big stores across the country to see if prices are staying reasonable. So far, about 72% of products have kept their prices the same since the zero VAT rate started in May.
In simpler terms, the zero VAT rate is like a discount that should help keep prices down for things like milk, bread, vegetables, sugar, coffee and baby diapers. The latest check on February 13 in Nicosia found that the price differences for 55 household items weren’t too extreme, ranging from 225.06 to 243.24 euros.
This zero VAT discount can save some money, about €7.23 to €7.76 on a total purchase of around €95, depending on where one shops.
But there’s some other news about prices in general: For January 2024, the prices of clothes and shoes dropped a significant 13%, which helped balance out a small increase (0.15%) in food and drink prices. Compared to January 2023, the cost of food in Cyprus went up by about 2.81%, mainly because agricultural products got more expensive.
