Lowering the value-added tax (VAT) rate for all goods and services would be preferable to exemptions on select products, like food, Lithuania's Finance Minister Rimantas Šadžius.
Rimantas Šadžius
© DELFI / Mindaugas Ažušilis

"I would not like to see the budget losing a chunk of revenue, which would inevitably happen if we suddenly cut VAT rate for a group of good," Šadžius told Žinių Radijas on Thursday. "The same could not be said about cutting the overall VAT rate. Sure, it would affect budget revenues in some way, but we need to look into whether the effects of gradual VAT lowering would not be outweighed by resulting economic growth."

The Lithuanian parliament is considering a bill on cutting VAT rates on staple foods from the general rate of 21% to 5%.

Meanwhile Prime Minister has said he does not agree with exemptions on select goods, but suggested instead cutting the general rate to 18%.

Social Democrat MP Arvydas Mockus, member of the Economy Committee, drafted a bill to that effect this week.

Narvesen stores and Lietuvos Spauda kiosks start selling Bitcoins

Narvesen stores and Lietuvos Spauda kiosks are launching the sale of Bitcoin vouchers that can...

Lithuanian meat processing company allowed to export beef to China

Krekenavos Agrofirma , a meat processing company owned by the family of Viktor Uspaskich, the founder...

Former Lithuanian EU diplomat Usackas joins Avia Solutions Group

Vygaudas Usackas , a former long-time Lithuanian and EU diplomat, on Tuesday joined the board of...

Lithuania hopes to attract new biotechnology investment

Lithuania's foreign investment promoting agency Investuok Lietuvoje ( Invest Lithuania ) hopes to...

Analyst: Lithuanian retail fuel prices may rise 3-4 cents in wake of Saudi oil attacks

SEB Lithuania's analyst Tadas Povilauskas says a surge in crude prices following last weekend's...