From today until December 31, 2025, a zero VAT rate will be applied to essential items such as baby milk, diapers (both for children and adults), feminine hygiene products, and certain fruits and vegetables.

According to a statement from the Tax Department, a zero VAT rate will be implemented on categories of essential goods as stipulated by the Ministerial Council's decree (KDP 349/2024).

Specifically, the items include baby milk (both liquid and powdered), children's diapers, adult diapers, and feminine hygiene products such as tampons, sanitary pads, and incontinence pads.

Energy Minister George Papanastasiou labeled recent claims that electricity consumers would subsidize support for vulnerable groups under the EAC's Tariff 08 as incorrect. Papanastasiou clarified that following a decision by the Ministerial Council based on a proposal by the Finance Minister, the state would cover 100% of the increase in electricity prices beyond the reference price (set between November 2021 and June 2022), with the fiscal impact estimated at €25 million until the end of 2025.

Papanastasiou explained that as of the October 29 decision, 22,800 low-income pensioners and 10,700 single-parent families were added to Tariff 08, bringing the total beneficiaries under this tariff to over 40,000 individuals.

He also reminded that around 8,000 vulnerable households were already included in Tariff 08, receiving a 20% discount on electricity rates, with the cost burden falling on other consumers. "An average household consuming 800 kWh per month pays an additional €2 to €2.5 every two months," he noted.

Under the latest decision, Papanastasiou said, "Beyond the 20% discount supported by other consumers, there will now be an additional subsidy covering 100% of the electricity price increase when it exceeds the reference price set between November 2021 and June 2022," referencing the surge in energy prices following the start of the Ukraine war. He added that this decision served as the basis for the horizontal subsidy that ended on October 31.

The increase in electricity prices will be fully subsidized by the state with an estimated budget of €25 million. Papanastasiou also mentioned that small workshops are being added to Tariff 10 of the EAC, with an estimated fiscal cost of €0.5 million.

Papanastasiou concluded by stating that a decree clarifying these issues would be issued this week.