The government is extending the zero VAT rate on essential goods until December 2026, Finance Minister Makis Keravnos announced following a Cabinet meeting that approved the Finance Ministry’s proposal.
Keravnos stated that the extension concerns the zero value-added tax (VAT) rate that was due to expire in December 2025, which will now remain in effect until the end of 2026.
The measure covers baby milk, children’s and adult nappies, feminine hygiene products, as well as fresh or chilled fruits and vegetables.
According to the Finance Minister, maintaining zero VAT on these specific products reduces the expenses of vulnerable households, increases their disposable income, and improves their standard of living.
Despite inflation for 2025 being zero, Keravnos emphasised that the measure “serves the vulnerable groups and vulnerable citizens of our country, and we want to maintain it”.
