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- Ελληνικά
What the price monitoring by the Consumer Protection Service of the Ministry of Energy, Trade and Industry shows
As it is known, on 5 May 2023 the Government implemented the measure of zero VAT rate on essential goods and more specifically on seven (7) basic categories of products:
[*]Bread (5%) [*]Milk (5%) [*]Eggs (5%) [*]Baby food (5%) [*]Baby diapers (19%) [*]Products for feminine hygiene protection (5%) [*]Adult diapers (19%)
The assessment of the Consumer Protection Agency (CPO) for the period of implementation of the measure, i.e. from 5 May onwards, shows that this has had a very positive impact and a significant benefit to consumers as a whole.
This is demonstrated by the market monitoring carried out by the CPS. In particular, the CPS regularly monitors the prices of 65 high consumption products (for which the measure was applied) in nine different large supermarkets, corresponding to 58 points of sale nationwide.
The results of these surveys are summarised in the table below:
[TD]
22/06/2023
[/TD] [TD]06/07/2023
[/TD] [TD]06/07/2023
[/TD] [TD]20/7/2023
[/TD] [TD]03/08/2023
[/TD] [TD]01/09/2023
[/TD] [/TD][TR] [TD]
Exact reduction (or more)
[/TD] [TD]86%
[/TD] [TD]80%
[/TD] [TD]79%
[/TD] [TD]77%
[/TD] [TD]75%
[/TD] [/TD] [/TR] [TR] [TD]No exact reduction (or increase)
[/TD] [/TD] [TD]13%
[/TD] [TD]15%
[/TD] [TD]15%
[/TD] [TD]17%
[/TD] [TD]19%
[/TD] [/TR] [TR] [TD]
D[/B]
[/TD] [TD]1%
[/TD] [TD]6%
[/TD] [TD] [TD]6%
[/TD] [TD]6%
[/TD] [TD]6%
[/TD] [/TR]
* Comparison of values with the recording made on 3/5/2023
According to the last recording, the prices of products in these hypermarkets, four months after the implementation of the measure, remain 75% at exactly the same level (or lower) as recorded on 3/5/2023, i.e. two days before the application of the zero rate. As can also be seen from the above table, the percentage of products whose prices have increased follows an ascending trend, which is justified by the data prevailing in the market at this period of time, especially in the food sector, which has high inflation.
It is also worth noting that Cyprus, although it imports most products, has maintained inflation in the category of food and non-alcoholic beverages at very satisfactory levels compared to the other countries of the European Union. From the above data, moreover, it is evident that for many products of the above categories increases have occurred, which have been absorbed to a considerable extent by businesses in their efforts to contain prices.
The Government, having placed the welfare of citizens at the centre of its attention, implements, where feasible, measures aimed at the immediate economic relief of consumers, in order to respond to the difficult economic conditions prevailing.
The zero VAT rate on essential goods is one of these measures, which the PSO considers to have been of significant benefit to consumers, particularly families with young children, who, if not implemented, would have been asked to pay 5% and/or 19% more for the purchase of products falling into the above categories.
(MB)
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Views & opinions expressed are those of the author and/or PIO
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