Removal of VAT on essential food items

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 intend…