- Finance Ministry assigns responsibility to Agriculture and Economics Ministries to ensure reduced VAT benefits reach consumers for certain food products
- Reduced VAT rate expansion for specific food items creates negative fiscal impact already considered in budget project development
- Agriculture and Economics Ministries must do extensive work to ensure correct pilot project implementation and precisely define which food products qualify for reduced rates
- Finance Ministry emphasizes importance of ensuring VAT reduction benefits fully reach consumers rather than remaining as retailer or intermediary profits
- Government approved reduced VAT application for bread, milk, eggs and fresh poultry meat as pilot project from July 1 2026 to June 30 2027 with 12 percent rate instead of standard 21 percent
Source: tvnet.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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