Zero VAT on essentials extended through 2026

No VAT will be levied on certain essential consumer items for the duration of the year, the tax department said on Thursday.

The government is rolling over into 2026 its policy of zero VAT on these items. The relevant decree issued by the cabinet is dated November 21, 2025.

Its stated purpose is to “support households and rein in the cost of living”.

Essential items subject to zero VAT include baby formula, nappies for children and adults, and women’s personal hygiene products such as tampons.