Zero VAT imposed on meats, bread, milk, and other essential products

A zero VAT rate will be imposed from October 1, 2026 on meats, while from October 12, the measure will extend to bread, milk, baby food, coffee, and sugar, according to a press release issued by the Tax Department.

? Decree published in the Official Gazette of the Republic amends the Value Added Tax Law, following a relevant decision by the Cabinet. Specifically, from October 1, 2026, until May 31, 2027, the zero VAT will apply to fresh or preserved meats in simple refrigeration or frozen beef (codes of class CN 0201 and CN 0202), pork (codes of class CN 0203), sheep or goat meat, edible by-products of slaughtered animals, beef, pork, sheep, goat (codes of class CN ex 0206), edible meats and by-products of poultry of class 0105 (codes of class CN 0207), edible meats and by-products of rabbits and hares (codes of class CN ex 0208).

The Tax Department noted that meat products, such as marinated meats, smoked, wine-soaked, sheftalies, burgers, chicken nuggets, sausages, lountza, roasts, gyros, etc., will continue to be subject to the reduced VAT rate of 5%.

At the same time, it is noted that fish products, such as canned fish, smoked fish, marinated, battered, etc., will continue to be subject to the reduced VAT rate of 5%.

Additionally, the Tax Department stated that as of October 12, 2026, until May 31, 2027, the zero VAT will apply to all types of fresh or frozen bread with or without sourdough. Baked goods, dried bread, and any bread with added ingredients such as raisins, nuts, or herbs are not included.

Zero VAT also applies to fresh milk (e.g., cow, goat, sheep), sweetened, condensed, long-life, flavored milk (e.g., chocolate, banana), plant-based milk (e.g., almond, soy, rice), and coffee, including unroasted, roasted beans, ground, powdered, instant coffee, flavored coffee, with caffeine or decaffeinated in any packaging. Ready-to-drink beverages or drinks made from coffee consumed cold or hot are not included.

Regarding sugar, zero VAT is applied to white, brown, black crystal sugar, fine (powdered), coarse, in cubes, in packets, as well as to baby food: in powder, dry and/or liquid form, intended for consumption by children.

Snacks (e.g., chips, nuts, candies, chocolates, ice creams, yogurt cups) are not included in the reduced VAT.

Compliance measures underway Ministry says, following Cyprus’ referral to CJEU for landfill directive

Compliance measures are underway Ministry of Agriculture, Rural Development and Environment said on Friday, following Cyprus’ referral to the Court of Justice of the European Union for failing to correctly apply the Landfill Directive and the Waste Framework Directive.

The Ministry said that the referral has to do with compliance issues that have been identified in previous years and for which actions are already underway. It also explained that the referral to the Court is mainly in relation to the management of municipal waste in the district of Paphos, as well as in general to the non-establishment of a comprehensive and appropriate network of waste management facilities on the island.

The Ministry pointed out that challenges in waste management exist and a systematic effort is made to address them through specific planning, which includes both immediate interventions and the implementation of long-term planning for the transition to a modern and sustainable waste management system.

According to the Ministry, the immediate planning concerns the necessary interventions for the operation and upgrading of the landfills at Pentakomo and Koshi villages, and the main goal is that the relevant infrastructures that will be created in the next period, as a transitional solution, can, to the greatest extent possible, be utilized in the future waste management system, so that the investments have long-term value.

As regards Paphos district, the Ministry said that the immediate goal is the development of infrastructure that will contribute to the reduction of waste that is disposed as municipal waste, through the diversion of both recyclable materials and organic waste.

It noted that the proposed solutions are comprehensive and multidimensional and concern the whole of Cyprus, including the remote communities. The success of these actions depends, however, on the cooperation of all those involved, the Ministry furthermore said.

The Ministry also noted that emphasis is placed on the expansion of the separate collection of waste streams, the optimal utilization of the available infrastructure and the promotion of practices, which directly contribute to the increase in recycling and the reduction of sanitary waste.

Yellow warning issued for thunderstorms in Cyprus

The Cyprus Department of Meteorology has issued a yellow warning for strong thunderstorms, valid from 10:00 to 17:00 on Friday.

According to the warning, isolated heavy thunderstorms are expected to affect the island at times, initially the western half of the island and later possibly the remaining areas as well.

In thunderstorm, hail is expected while winds will be variable strengthening. Precipitation rate is locally expected to exceed 35 millimeters per hour.

FinMin discusses competitiveness and political cohesion with EC official

Cyprus Finance Minister, Makis Keravnos, discussed European competitiveness and political cohesion, in view of the new programming period within the framework of the EU’s new multi-year budgetary framework with the Director General of the Directorate-General for Regional and Urban Policy, Themis Christophidou.

An Ministry of Finance press release said that Keravnos thanked Christophidou for the continuous and close cooperation and emphasized that Cyprus will continue to maintain its constructive role in the formulation and implementation of important EU policies for the development and strengthening of the EU for the benefit of its member states and its citizens.

PRESS RELEASE – EUROPEAN COMMISSION

Commission disburses pound 2.9 billion under Ukraine Facility to support financial stability and reforms

Today, the European Commission has released pound 2.9 billion to Ukraine to support financing needs and maintain the functioning of the country’s public administration, as it continues to defend itself against Russia’s war of aggression. This amount includes pound 800 million to be provided for the first time under the Ukraine Facility component of the Ukraine Support Loan.

President of the European Commission Ursula von der Leyen said: ‘As Ukraine defends itself against Russia’s aggression, it also continues to deliver comprehensive reforms under the Ukraine Plan. With today’s disbursement, we are helping safeguard Ukraine’s financial stability and supporting investments that will underpin its future recovery. Because European solidarity means concrete support. Europe will stand by Ukraine’s side for as long as it takes.’

This marks the eighth disbursement under the Ukraine Facility, the EU’s main instrument to support Ukraine’s recovery, reform agenda and progress towards EU membership. With this latest payment, total EU support provided under the Ukraine Plan will reach over pound 32 billion (including external contributions from Member States and partner countries and funds channelled through the Plan from the Ukraine Support Loan), equivalent to almost 70% of the current funding available under the Facility’s first pillar. For the first time, this instalment also includes a top up from the additional pound 8.35 billion provided under the Ukraine Support Loan for 2026.

This disbursement follows Ukraine’s successful implementation of reforms across several strategic sectors, including judiciary, financial markets, human capital, business environment, energy, transport, agriculture and the green transition.

Following the Commission’s assessment of Ukraine’s payment request on 24 August, the Council concluded that Ukraine had successfully fulfilled three reform steps linked to the eighth instalment, together with one outstanding reform step from the fifth instalment, three reform steps from the seventh instalment, and three reform steps brought forward from the ninth instalment.

For the rest of 2026, Ukraine still has pound 33.7 billion available in financial support: pound 29.3 billion remain available for disbursement under the Ukraine Support Loan, consisting of pound 16.6 billion to support Ukraine’s defence industrial capacity and pound 12.7 billion in budget support. In addition, pound 4.4 billion in budget support is still available under the initial Ukraine Facility for this year. This means that more than pound 17 billion in budget support is available for 2026, subject to the fulfilment of the relevant conditions outlined in the Ukraine Plan and the Memorandum of Understanding.

The timely implementation of the reforms and policy conditions jointly agreed by the European Union and Ukraine is key to proceed with the corresponding disbursements as planned, including under the Macro-Financial Assistance programme and the Ukraine Facility.

The European Commission remains fully committed to delivering the pound 90 billion Ukraine Support Loan foreseen for 2026 and 2027, as well as the remaining funds under the initial Ukraine Facility.

Background

The Ukraine Facility, the European Union’s main financial support instrument for Ukraine, entered into force on 1 March 2024 and provides over pound 50 billion in grants and loans to support Ukraine over the period 2024-2027 (excluding external contributions received from Member States and partner countries as well as funds stemming from the Ukraine Support Loan). Funding under the Ukraine Facility is designed to bolster Ukraine’s macro-financial stability, recovery and modernisation, keep its public administration running, and support its reform efforts.

As part of the Ukraine Facility, the Ukraine Plan provides a clear calendar of the reforms that must be adopted by pre-agreed deadlines, with disbursements tied to Ukraine meeting the Plan’s targets. EU Member States, third countries and international organisations can make voluntary contributions to the Ukraine Facility. Sweden has already made additional voluntary contributions to Pillar I of the Facility, the Ukraine Plan. Norway will soon become the first third country to follow.

The Ukraine Facility also serves as one of the channels through which support under the Ukraine Support loan is provided. The pound 90 billion Ukraine Support Loan covers Ukraine’s needs over 2026 and 2027. Of the pound 90 billion, pound 60 billion is for strengthening Ukraine’s defence capabilities and defence industrial capacity and pound 30 billion is in budget support to help keep the state functioning, maintain essential public services and strengthen economic resilience.

Following Ukraine’s submission of its Financing Strategy in March 2026, the Council adopted an implementing decision on 23 April 2026, allocating up to pound 45 billion for 2026. This includes pound 16.7 billion in budget support, split equally between the Ukraine Facility and Macro-Financial Assistance, with each amounting to up to pound 8.35 billion, and pound 28.3 billion for defence industrial capacities.

Since 2022, the EU and its Member States have provided pound 227.4 billion in overall support to Ukraine, including pound 3.8 billion from the proceeds of immobilised Russian assets.

For more information

Website – The Ukraine Facility

Factsheet – The Ukraine Facility

Factsheet – EU solidarity with Ukraine

Commission approves pound 170 million Bulgarian State aid for farmers facing increased fuel and fertiliser prices

The European Commission has approved a pound 170 million Bulgarian State aid scheme for farmers facing increased fuel and fertiliser prices due to the Middle East crisis.

The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.

The Bulgarian scheme

Bulgaria notified to the Commission a pound 170 million scheme to support companies active in the farming sector. The scheme, which will run until 31 December 2026, aims to mitigate the impact of the increase in agricultural fuel and fertiliser prices.

The aid will take the form of direct grants. The scheme concerns the granting of a limited amount of aid calibrated on the increase of the prices of fuel and fertilisers, with a maximum of pound 50,000 per company.

The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which enables Member States to support the development of certain economic activities subject to certain conditions, as well as Sections 1 and 2.1 of the METSAF.

The Commission found that the scheme is in line with the conditions set out in the METSAF. In particular, the aid will be granted based on a scheme with a clear estimated budget and will be provided to temporarily support the development of companies active in the primary production of agricultural products. The Commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest.

On this basis, the Commission approved the Bulgarian scheme under EU State aid rules.

Background

On 29 April 2026, the Commission adopted the METSAF to enable Member States to support the EU economy in the context of the Middle East crisis. The METSAF is a targeted and temporary framework to address the effects of the crisis on some of the most exposed sectors of the economy: agriculture, fishery, transport and energy-intensive industries. The METSAF will be in place until 31 December 2026. During its period of application, the Commission will keep the content, scope and duration of the framework under review in the light of developments in the Middle East and of the general economic situation.

While the transition towards a clean economy remains the long-term solution to shield EU companies from the effects of global energy shocks, the METSAF allows Member States to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis.

To this end, support can take various forms for companies active in the agriculture, fishery and transport sectors. This includes aid based on actual consumption to cover part of the price increases for fuel or fertilisers, and a simplified approach for small amounts of aid.

The METSAF also includes a temporary adjustment to the Clean Industrial Deal State aid Framework allowing for further flexibility and higher aid intensities to address electricity price spikes.

More information on the METSAF can be found online.

For more information

The non-confidential versions of today’s decisions will be made available under case number SA.124701, in the State aid register on the Commission’s competition website. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.

Commission seeks feedback on EU KIDS Act

The Commission is gathering feedback on the proposed EU Kids Act.

The aim is to collect input from children, parents, guardians, teachers and educators, as well as online platforms covered by the proposal. It will build on the broad public evidence base that supported the proposal, including the report of the co-chairs of the Special Panel on child online safety, dedicated consultations with children, parents and educators, and the 2026 Children’s Online Experiences Research.

Adopted in September, the EU KIDS Act will enhance the online safety of children throughout the Union by introducing a social media delay, strong safety-by-design rules, privacy preserving age assurance, and effective enforcement.

The feedback period closes on 26 November 2026. All responses received will be summarised by the European Commission and presented to the European Parliament and Council with the aim of feeding into the legislative debate.

(For more information: Thomas Regnier – Tel.: +32 2 299 10 99; Patricia Poropat – Tel. + 32 2 299 27 17)

Commission clears creation of joint venture by Tata Sons and Bosch

The European Commission has approved, under the EU Merger Regulation, the creation of a joint venture by Tata AutoComp Systems Limited, controlled by Tata Sons Private Limited (‘Tata Sons’), all of India, and Robert Bosch GmbH (‘Bosch’) of Germany.

The transaction relates primarily to the production and supply of electric axles for the automotive industry in India.

The Commission concluded that the notified transaction would not raise competition concerns, given the limited impact on the European Economic Area. The notified transaction was examined under the simplified merger review procedure.

More information is available on the Commission’s competition website, in the public case register under the case number M.12522.

(For more information: Ricardo Cardoso – Tel.: +32 2 298 01 00; Sara Simonini – Tel.: +32 2 298 33 67)

Limassol to host the 5th Thalassa Festival aiming to highlight blue economy importance

Deputy Minister of Shipping Marina Hadjimanolis has said that the 5th ‘Thalassa 2026’ Festival, which will be held on 10th October in Limassol, aims to bring the public closer to the sea and show the importance of the blue economy.

Speaking at a press conference on Friday, together with Mayor of Limassol, Yiannis Armeftis, the Deputy Minister said that the Festival will start at 9:00 am and at 10:00 a.m. it will be officially opened by President of the Republic, Nikos Christodoulides.

Our goal during the Festival, she stressed, “is to bring the public closer to the sea and to highlight the importance of shipping and the Blue Economy for the development and prosperity of Cyprus, so that citizens, and especially young people, get to know the sea not only as a source of entertainment and recreation, but also as a field of knowledge, studies and professional interests.”

She pointed out that despite the fact that Cyprus has one of the largest commercial fleets, both in Europe and worldwide, “the general public often does not have a complete picture of the opportunities offered by the maritime and nautical sector.”

“Through the Festival we seek to bridge this gap and present the world of the sea in a direct, interactive and experiential way”, she stressed.

More than 30 public and private bodies, organizations, services and academic institutions that are active in the fields of navigation and the sea will take part in this year’s Festival, the Deputy Minister added.

This year, she said, a special emphasis is placed on the new generation to get familiar with “this modern and dynamic sector of our economy, to know the possibilities it offers and to realize that shipping is not limited only to ships, but includes a wide range of professions and scientific branches».

The opening ceremony, Hadjimanolis said, will take place in the presence of vessels of the Maritime Administration of the National Guard, the Port and Maritime Police, the Department of Fisheries and Marine Research, the Cyprus Port Authority, P and O Maritime and VTS Vasiliko Terminal Services Ltd.

Finally, she invited all citizens to visit the Festival and experience “a unique day dedicated to the sea”.

In his statements, the Mayor of Limassol, said that the Festival started five years ago and noted that it is of special importance for Limassol. The Blue Economy, research, technology and the protection of the marine environment are opening up new roads and new prospects for the future, the Mayor pointed out.

The Festival, he said, aims to familiarise he public with the opportunities offered by the sea and the Blue Economy.

Beyond that, he concluded, the Municipality of Limassol views such events as an opportunity to enhance our respect for the sea and the responsibility we all have for its protection.

Cyprus Stock Exchange

The Cyprus Stock Exchange (CSE) All Share Index closed at today`s stock exchange meeting as follows:

MEETING DATE: 02/10/2026

INDICES BASE VALUES: FTSEMed=5000, OTHERS = 1000

EURO (pound )

TRADED VALUE 305,767.27

INDEX

VALUE

%DIFF.

VALUE

FTSE/CySE 20

188.290

-1.440

295,904.110

MAIN MARKET INDEX

250.220

-2.320

223,077.260

INVESTMENT COMPANIES MARKET INDEX

2,698.120

-0.710

10,115.740

CSE GENERAL INDEX

320.430

-1.450

296,756.610

HOTELS INDEX

2,013.160

-0.970

472.640

ALTERNATIVE MARKET INDEX

2,173.090

1.590

78,730.350

* The second column presents the percentage variation of the indices as compared to the last meeting.

Tourism revenue up 4.6% in July, down 7% in seven months

Tourism revenue in Cyprus rose by 4.6% in July 2026, reaching pound 536.5 million, compared with pound 513 million in the same month of 2025, according to the results of the Passenger Survey released on Friday by the Statistical Service.

For the January-July 2026 period, tourism revenue stood at pound 1.7578 billion, compared with pound 1.8911 billion in the corresponding period of 2025, recording a decrease of 7%.

Tourists’ average expenditure per person in July amounted to pound 920.66, compared with pound 870.78 in July 2025, an increase of 5.7%, marking the highest July figure in a decade. Average daily expenditure rose to pound 107.05 from pound 96.75, while the average length of stay fell to 8.6 days from 9 days.

Tourists from the United Kingdom, Cyprus’ largest tourist market, accounting for 31.9% of total arrivals, spent an average of pound 1,137.69 per person in July, or pound 110.46 per day, during an average stay of 10.3 days.

Israeli tourists, the second largest market, accounting for 20.5% of arrivals, recorded average expenditure of pound 743.49 per person and pound 158.19 per day, with an average stay of 4.7 days.

Among other major markets, Polish tourists, who accounted for 6.3% of arrivals, spent pound 664.37 per person and pound 92.27 per day, with an average stay of 7.2 days.

Highest and lowest daily expenditure

————————————-

Israeli tourists recorded the highest average daily expenditure in July 2026, at pound 158.19 per person. They were followed by tourists from Norway, at pound 138.66, Denmark at pound 136.21, Switzerland at pound 128.64 and Belgium at pound 125.51. Tourists from the United Kingdom, Cyprus’ largest market in terms of arrivals, recorded average daily expenditure of pound 110.46.

Tourists from Greece recorded the lowest average daily expenditure, at pound 55.95 per person. They were followed by tourists from the United States, at pound 83.43, the Netherlands at pound 89.56, Poland at pound 92.27, France at pound 92.75 and Germany at pound 94.87.

Defence Minister and US Ambassador review cooperation in defence and security

Minister of Defence Vasilis Palmas had a meeting on Friday with the new US Ambassador in Cyprus, John Breslow, during which they reviewed the cooperation between the two countries in the areas of defence and security.

According to a post of the Ministry of Defence on ‘X’, during the meeting, they reviewed the bilateral cooperation between the Republic of Cyprus and the United States in the fields of defence and security.

It is added that they also confirmed the common will to continue and further enhance their cooperation, as well as to jointly contribute to the promotion of peace and stability in the Eastern Mediterranean.

Inflation in Cyprus at 5.2% in September, according to Eurostat

Annual inflation in Cyprus is estimated to have stood at 5.2% in September 2026, remaining unchanged from August, according to Eurostat’s flash estimate published on Friday.

Based on the Harmonised Index of Consumer Prices (HICP), inflation in Cyprus stood at 3.0% in April, 3.5% in May, 4.1% in June and 4.4% in July, before rising to 5.2% in August and, according to the estimate, remaining at the same level in September.

Compared with the previous month, the HICP in Cyprus is estimated to have decreased by 0.4% in September. In September 2025, annual inflation in Cyprus stood at 0.0%.

Meanwhile, annual inflation in the euro area is estimated to have increased to 3.8% in September 2026, from 3.2% in August.

According to Eurostat, among the main components of euro area inflation, energy is expected to record the highest annual rate of increase, at 18.8% in September, compared with 14.3% in August.