According to its announcement, 44 out of 48 products with zero VAT, i.e. 92%, show a higher than expected average retail price after the VAT reduction< /h2>
The prices of 92% of the products of the price watch of the Consumer Protection Service are shown to be higher than expected, given the zero VAT rate adopted for basic consumer products, notes the Cyprus Consumers Association.< /p>
According to his announcement, 44 out of 48 products with zero VAT, i.e. 92%, show a higher average retail price than expected after the VAT reduction, and only 4 products had their prices as expected. “This means that consumers, for various reasons, are not currently enjoying the full expected benefit of the VAT zero rate,” he says. 80 cents over what it would have been expected to have if VAT had been deducted from the April price. Baby foods are also up by 53-56 cents.
It is noted that two baby diaper products were 56 and 71 cents cheaper than the April price excluding VAT. On the contrary, three baby foods are more expensive than the April price including VAT, by up to 46 cents.
“As the Cyprus Consumers Association we cannot explain this”, they say, noting that such an extent of the phenomenon was not expected . “The competent agency should, at least for the purposes of transparency, give its opinions in a documented manner,” he concludes.
