Prices for the vast majority of selected products examined by the Consumer Protection Service have fallen by 5% compared with levels before the measure was introduced. The measure extended the zero VAT rate to bread, milk, coffee, sugar and baby food.
In an announcement on Thursday, the Service said that monitoring to date showed the measure was being applied to a very large extent to the products examined.
The zero VAT rate for the five product categories came into effect on 12 October 2026 and will remain in place until 31 May 2027.
The Service monitors the market through on-site recording of retail prices at large supermarkets, as well as by collecting and assessing data from the e-kalathi online platform.
The Service clarifies that the survey is based on a sample and covers selected products in the specific categories, not all products available at points of sale. The results therefore reflect the picture provided by that sample.
The Service notes that applying the zero VAT rate does not guarantee that prices will remain unchanged or will not rise in the coming months. Prices are affected by factors including production and supply costs, international raw material prices, transport costs and competitive conditions.
The Consumer Protection Service says it will continue systematically monitoring retail prices, with the aim of strengthening market transparency and keeping consumers informed in a timely manner.
It also urges consumers to use the e-kalathi platform to compare prices and get information before making purchases.
Source: CNA
