Lithuanian Prime Minister Gintautas Paluckas has confirmed that the Government is considering increasing the reduced rate of value-added tax (VAT) from 9% to 12%.
The 21% standard VAT rate and the 5% super-reduced rate will remain unchanged.
A formal proposal to raise the reduced rate is anticipated in the next few weeks.
“Nobody is really talking about raising the general rate, which stands at 21%. We are not talking about increasing the 5% rate, which is for medicines, [and] other vital goods. Whereas discussions are indeed ongoing about the 9% or 12% rate, as this includes fewer vital goods and services,” Paluckas stated to reporters
Earlier, the Lithuanian Parliament (Seimas) accepted for consideration Draft Bill No. XVP-90 which aims to introduce a reduced 9% VAT rate on essential food products on 30 December 2024.
The proposed bill also includes a measure to extend the lower VAT rate to catering and beverage services, excluding alcoholic beverages.
