Finance Minister Makis Keravnos on Wednesday announced the extension of the zero VAT rate on certain basic goods until December 2026, following a Cabinet meeting that approved a related proposal.

The proposal, submitted by the Finance Ministry, concerns the extension of the zero Value Added Tax rate, which was due to expire in December 2025, “with the aim to remain in force until December 2026 on certain basic products,” Keravnos said.

The products covered are children’s milk, nappies for children and adults, female hygiene products, and fresh or chilled fruit and vegetables, he pointed out.

The stated that maintaining the zero VAT on these specific products “directly reduces the expenses of vulnerable households“.

“This measure increases their available income and improves the standard of living,” he added.

“Although inflation is zero per cent for 2025, the government believes that the measure serves the vulnerable groups, the vulnerable citizens of our country and we want to maintain it,” the minister continued.

When asked about the meeting of the union of municipalities concerning the finances of local authorities and their criticisms against the government, Keravnos reported that the Ministry of Finance implements the policy of the government.

He explained that “27 million have been allocated for 2025, 15 million related to 2026 will be given in November and another 12 million within 2026“.

“These are what we had said as a government, we will give them and we will give them,” he stated.

He added that the ministry is “open to discuss and hear opinions”.

“The Finance Ministry has never imposed any veto on serious, complete, substantiated opinions or suggestions,” Keravnos said.

“What serves is dialogue and consultation with good intent and not threats,” the minister concluded.