Lithua­nian PM:VAT dis­count on heat­ing, ho­tels will re­main

The Baltic Times - - BALTICS - BNS/TBT Staff

Value-added tax (VAT) dis­count for cen­tral­ized heat­ing and ho­tels will re­main, says Lithua­nia's Prime Min­is­ter Saulius Skver­nelis, adding that the gov­ern­ment would an­nounce the pro­posed tar­iff next week.

Up un­til this June, the VAT tar­iff for heat­ing was 9 per cent, a tar­iff also ap­plies on ac­com­mo­da­tion ser­vices. The gov­ern­ment has ear­lier con­sid­ered dis­card­ing the priv­i­leges and start ap­ply­ing the usual 21-perc ent size.

The VAT dis­count for heat­ing was agreed be­tween the prime min­is­ter and the op­po­si­tion con­ser­va­tives on the re­form of the forestry sec­tor, while the de­ci­sion to leave the lower tax for ho­tels was made in light of re­gional com­pe­ti­tion and projects that are be­ing de­vel­oped.

The gov­ern­ment is dis­cussing a new 15-per cent tar­iff for ho­tels, how­ever, the in­for­ma­tion is yet to be con­firmed by the prime min­is­ter.

"The ex­act fig­ures will be an­nounced next week. We have signed an agree­ment with the con­ser­va­tives on in­tro­duc­tion of a new lower tar­iff on heat­ing – this will be done," Skver­nelis said.

"This will also be good news for ho­tels. We as­sessed the risks of how Lithua­nia would look among other Euro­pean Union coun­tries, if we had a 21-per cent tar­iff and the im­pact it would have on busi­ness. This is part of our ex­ports. We have at least 20 ho­tel devel­op­ers, busi­ness plans in ad­vance and the dras­tic raise would have an ef­fect," said the prime min­is­ter.

Cur­rently, the lower 9-per cent tar­iff will also be ap­plied on books and trans­port ser­vices, while a 5-per cent tar­iff is ap­plied on med­i­ca­tion. Un­der one of the sce­nar­ios dis­cussed at the gov­ern­ment, all of the goods and ser­vices should be sub­ject to a 5-per cent tar­iff start­ing 2018

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