Filenews 15 July 2025
An attempt to continue the zero VAT in 2026 on children's diapers, adult diapers and products for women's hygienic protection, is being made in the Parliament.
The measure, as is known, was reinstated last November and will be in force until December 31, 2025.
Independent MP Alexandra Attalidou (Volt) submitted a relevant bill to the Parliament in which she proposes that this measure, especially for the specific three categories of products, which are considered essential, be extended for next year.
If the measure for the three specific products is not extended, VAT on baby diapers, adult diapers and baby milk will return to 19%. Unlike other product categories which will be charged with 5% VAT.
When the zero-VAT measure was terminated last October, there were strong reactions, as household spending had risen. It is recalled that at that time the measure was terminated with the excuse that due to the decrease in the rate of increase in inflation, the decrease in the price of fuel and electricity, there were no longer the reasons why the implementation of these measures was decided.
These measures were taken to support households affected by inflationary pressures. After the reactions from both citizens and parties overnight, the government reintroduced zero VAT in 6 categories, namely baby diapers, adult diapers, baby milk, feminine hygiene products, vegetables and fruits, on the grounds that these products are aimed at young couples and the middle class.
The measure was initially stated to be in force in perpetuity, but in the course of time it was clarified that it will be in force until the end of 2025 and will be reviewed depending on the data that will be formed. The total cost of this measure for the state amounts to €5.1 million.
A competent source told "F" that the Parliament cannot proceed on its own to the continuation of zero VAT on the three specific categories of products, as such a law was unconstitutional, due to the violation of the principle of separation of powers or the loss of revenue that it entails for the state.
Therefore, the legislative regulation mainly exerts pressure on the government to continue the measure. Last November, when the measures were reinstated by the Ministerial Office, the Government had said that the measures would be updated depending on the situation that would be formed, based on the fiscal capabilities of the State.
Targeted electricity subsidy
Last October, the horizontal subsidy for the increase in electricity due to the reduction in the price of fuel and electricity was also terminated. Along the way, a decision of the Council of Ministers was announced to reduce energy costs for vulnerable groups of the population, essentially restoring the electricity subsidy for specific categories of consumers until the end of 2024. That is, from November 2024 to December 2025, the subsidy of the electricity billing price for the special residential tariff for vulnerable consumers (Code 08) and commercial use (tariff 010), i.e. vulnerable households and selected businesses, continues. The measure was also expanded to cover low-pensioners and single-parent families. An additional 22,200 households with low pensioners and 10,700 households of single-parent families, who are beneficiaries of the single-parent allowance, benefit from the measure, which is in force from November 2024. This subsidy has a cost for the state of €25 million.
In April '25, it was decided to reduce VAT on electricity to 9%, from 19%, until March 2026.
