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Cyprus cuts VAT on essentials until 31 Oct 2023

Despite drop in peak inflation, government cuts VAT on essentials  until 31 October 2023

The Cypriot Council of Ministers has now approved a temporary reduction in the reduced 5% and standard 19% rates on certain essential goods.

Cypriot inflation has now come off the 10.6% peak from July last year, and is now just over 6%. However, persistent rises on food – still at over 9% – has prompted the government to bring forward a zero-rating of certain essentials.

Other European inflation VAT cutsare common following inflationary disruptions to supply chains and the Russian invasion of Ukraine.

Goods subject to the cut include:

5% to zero:

  • milk;
  • bread;
  • eggs; and
  • baby food.

19% to 5%:

  • detergents,
  • fabric softeners,
  • toilet paper,
  • baby diapers,
  • cleaning supplies; and
  • adult diapers.


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