Latvian PM promises reduced VAT for fruits and vegetables

Next year it is planned to apply a reduced – 12% – VAT rate for fresh fruits and vegetables. The ruling coalition agreed on Monday, the 30th of October, as journalists were told by Prime Minister Evika Siliņa.
Previously it was allowed next year the VAT rate for fruits and vegetables could return to 21%.

However, the government found a compromise.

Considering that it is still necessary to balance financial sources for this step. Then the government will prepare the proposal for the second reading of the state budget project for 2024, as noted by Siliņa.
For multiple years – from the 1st of January 2018 to the 31st of December 2023 – a reduced 5% VAT rate remained in place on fruits and vegetables in Latvia.
As previously reported, Latvian prime minister previous said the coalition has agreed to support only local fruit and vegetable products, not the whole range.
Also read: Latvijas Radio: ZZS “forgets” about its own proposal to reduce VAT for food products
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