Cyprus to extend zero VAT rate
The Cypriot government has decided to extend the application of the zero VAT rate on essential goods for another six months, with Finance Minister Makis Keravnos announcing the addition of coffee and sugar to the list of exempted products.
Keravnos made the announcement following a cabinet meeting, stating that the extension was necessary as the current validity period would expire at the end of October. “We have decided to renew the list for another six months with a zero rate for basic products, and we have also included two more everyday items, coffee and sugar,” he noted.
Regarding potential subsidies for electricity and fuel, when asked, the minister reiterated the government’s commitment to implementing targeted measures. “The government’s policy revolves around targeted measures, which are not only more effective but also align with the fiscal framework and fiscal discipline required for our financial stability,” he stressed.
Through the extension of the zero VAT rate the government is demonstrating its commitment to its citizens, the minister added. “Depending on how conditions evolve, the government will continue to implement measures to support those in need,” he said.
