The Council of Ministers has approved a proposal by the Ministry of Finance to extend the zero VAT rate on selected essential goods until December 2026. The measure, initially due to expire at the end of 2025, covers baby milk, baby and adult diapers, women’s hygiene products, and fresh or frozen fruits and vegetables.
Government Rationale
Speaking after the cabinet meeting, Finance Minister Makis Keravnos said the extension is designed to keep key household expenses low and sustain the purchasing power of vulnerable citizens. Maintaining a zero VAT rate on these items, he explained, directly reduces the financial burden on families and enhances their standard of living.
Focus on Vulnerable Groups
Keravnos noted that although inflation is projected to remain at zero for 2025, the government considers the continuation of this policy essential. “This measure serves the vulnerable groups and citizens of our country, and we want to maintain it,” he said.
Source: CNA