Latvian Government Sets 12% VAT for Fruits, Berries, and Vegetables for One Year

• Latvian government sets VAT for fruits, berries, and vegetables at 12% for one year
• Existing 5% VAT rate for fruits and vegetables will remain until December 31st
• EUR 15.9 million needed for tax change will be found through review of excise duties and cancellation of EUR 3 million subsidy for farmers
• Government discusses long-term solution and balancing support for different sectors
• Ministry of Agriculture to assess the effect of 12% VAT rate on prices
• VAT not decisive factor in price creation, no significant industry growth observed with reduced VAT rate
• Wages for agricultural workers below industry average, imports dominate domestic consumption
• Ministry believes sector should move towards standard VAT rate of 21%
• Ministry of Agriculture should develop tools to support local farmers and promote consumption of healthy food.

Source: bnn-news.com

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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