Zero VAT In Cyprus Fails To Prevent Price Hikes For Many Products:
- In July 2023, 21% of products previously subject to zero VAT had higher prices than in April before the zero VAT rate was applied.
- In July, 27% of products with zero VAT rates had higher prices than in May, even after the implementation of the zero VAT rate.
- A whopping 83% of products with zero VAT rates were priced higher than the expected May prices, compared to the prices in April 2023 before the zero VAT rate took effect.
- These findings raise questions about the actual impact of the zero VAT rate measure in Cyprus.
- The Cypriot government has decided to extend the application of the zero VAT rate on essential goods for another six months, with coffee and sugar being added to the list of exempted products.