- Prime Minister Evika Siliņa says it will cost EUR 16 million to apply a reduced VAT rate of 12% to fresh fruit and vegetables in Latvia next year.
- The coalition agreed to apply the 12% rate instead of the originally planned 21% rate from 2024.
- The government will need to find financial sources to cover the cost of the reduced VAT rate.
- The reduced VAT rate of 5% for fresh vegetables, berries, and fruits was introduced in 2018 as a pilot project and was intended to last for three years.
- The government has agreed to extend the reduced VAT rate until the end of 2023.
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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