Lower VAT on food will significantly reduce prices for households

The measure will be implemented immediately after the draft bill, which is to be tabled within May, is passed in parliament. The reduction is expected to lead to a decline in food prices, as well as a substantial decrease in the prices of catering services, where VAT will also be lowered to 13 percent from 24 percent as part of a package of relief measures that will be activated immediately.

The basic consumer goods for which the VAT rate is to be reduced from 24 percent to 13 percent are as follows: Coffee, cocoa, tea, chamomile, sugar, salt, vinegar, spices, sausages, jams, chocolates, wafers, croissants, nuts, cans, snacks, cereals, sunflower oil, soybean oil, corn oil and vegetable fats.

 The catering sectors for which VAT is to be reduced are the following: Souvlaki and grill houses, pizzerias, bakeries, restaurants, tavernas, cafeterias, pastry and confectionery shops, snack bars, fast food shops and canteens.