Alpha News

Zero VAT Successfully Restrains Product Prices in Cyprus

Published January 20, 2026, 12:42

The implementation of zero VAT on essential products, such as baby formula, diapers, and fresh fruits and vegetables, has contributed to restraining prices in Cyprus. According to Alice Iordanou, Head of the Competition Sector of the Consumer Protection Service, the prices of these products are either held steady or even reduced, while on average they remain at 80% of the 2024 prices, despite increases in imports. The European Central Bank (ECB) has confirmed that Cyprus is in a good position regarding food inflation compared to other countries. This measure, combined with other factors, helps maintain the purchasing power of consumers.