Just last week, amendments to the Value Added Tax Law developed by the Ministry of Finance (FM) were forwarded for approval, which provides for a 12% VAT rate to be set for a fixed period – until the end of 2028.
The politician pointed out that the reduced VAT rate for vegetables produced in Latvia was temporary, which means that after a certain period it is revised again.
By reducing the VAT rate, the idea was to allow citizens to buy more healthy products, the minister emphasized, noting that this is offset by the increase in the excise duty on sugary drinks, which in turn are not desirable for health.
Krauze indicated that the ministry will later prepare a report on how the rate affects producers and what the consumption of vegetables is in Latvia.
Edmunds Jurēvics, chairman of the Saeima faction of the party association “Jaunā vietība”, claimed that the reduced VAT rate significantly supports producers and consumers.
According to the amendments to the Value Added Tax Law directed to the FM for coordination, it was expected that the reduced VAT rate would be applied until December 31, 2028. Such changes have a negative impact on the state budget – 17.1 million euros in 2025, 19.1 million euros in 2026, 23.4 million euros in 2027 and 24 million euros in 2028.
2024-10-01 08:10:21