This measure, which zero-rates over 16 essential food items, aims to make basic foods more affordable for citizens while supporting local agriculture. This change is part of the government's broader economic strategy detailed in Legal Notice No. 380 of the 2025/2026 budget.
The Finance Minister highlighted that this VAT removal is the first step in a larger plan to replace the current 12.5% VAT system with a simpler sales tax structure. According to the Minister, this transition is intended to ease administrative burdens on businesses and improve overall tax compliance.
The zero-rating applies specifically to "basic" food items, with the full list detailed in the official Legal Notice. This initiative complements the government's broader affordability and agricultural support initiatives.
For more information, the complete legal framework and implementation details are available in the official release on the Ministry of Finance website.
