Parliament reviews VAT rate cuts on food and domestic energy till Dec 2025
The Latvian Ministry of Economics is considering a two-year cut in the Value Added Tax rate on basic foodstuffs from 21% to 5%. This would cover meat, diary and bread. An extension to catering services is also being considered. In addition, domestic heating would be reduced from 12% to 5%
A number of other EU states cutting VAT on basics and fuel.
The temporary cut to 5% could come into effect between January 2023 and December 2025.
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