Abolishing Reduced VAT on Local Produce: A Boost to Shadow Economy, a Blow to Farmers

• The Association of Latvian Fruit and Vegetable Traders is dissatisfied with the plan to abolish the reduced VAT rate on fruits and vegetables grown in Latvia.
• They believe that this decision will boost the shadow economy and harm local producers.
• The association criticizes Agriculture Minister Armands Krauze for supporting the restoration of the 21% VAT rate for fruit and vegetables.
• They argue that removing the reduced rate will lead to a rise in the shadow economy and make it difficult for local wholesalers to compete with traders from neighboring countries.
• The association highlights that the reduced VAT rate has improved the sector by reducing the shadow economy and decreasing the deception of shoppers with imported produce.
• They call for politicians to be held accountable for their decisions and their impact on the industry and public welfare.

Source: eng.lsm.lv

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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