Newsroom
The Consumer Protection Service is keeping a close eye on how the zero VAT (Value Added Tax) rate impacts prices in 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, veggies, 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.
This zero VAT discount can save you some money, about €7.23 to €7.76 on a total purchase of around €95, depending on where you shop.
But there's some other news about prices in general. For January 2024, they found that prices for clothes and shoes dropped a lot (13% less), which helped balance out a small increase (0.15%) in food and drink prices. Compared to January 2023, the cost of food went up by about 2.81%, mainly because things like agricultural products got more expensive.
In January, some prices went up, like cooking fat (16.7%), flour (11%), frozen foods like seafood (10.4%), and yogurt (5.6%). But on the bright side, prices for veggies, sugar, fresh meat, and cheese went down.
So, while the zero VAT seems to be working for some things, keep an eye on prices, especially for your favorite snacks and meals.
