aA
Member of Lithuanian Parliament Kęstutis Masiulis (Homeland Union-Lithuanian Christian Democrats) talks against the plans to lift VAT exemption on heating and says that it is a tax increase for the middle class.
Heating in Lithuania
Heating in Lithuania
© Vida Press

"The Social Democrats once again have showed that they represent big capital interests. Increases of tax for the middle class are planned, next to that, a new tax concession for hotels is underway. The Social Democrats claim that VAT exemption on heating is abused by the "rich ones" but why the concessions to medicines, public transport and others are kept, while they are also used by those that do not really need them? Normally a family of two adults and two children that lives in a standard apartment has total income of LTL 3,000-5,000 (EUR 870-1,500), or two pensioners whose income is around LTL 1,500 (EUR 430). Which ones of those are the so called "rich ones"? Wealthy citizens, on the opposite, live in private houses and do not use central heating," he said.

According to MP Masiulis, a new concession for business is created from the bigger money received from central heating users.

VAT from 2015 will go down from 21 percent to 9 percent to businesses engaged in accommodation services.

The Law on Value Added Tax stipulates that the reduced 9 percent VAT rate on heating and hot water is in force until 31 December 2014. The Cabinet recently decided to lift the exemption.

|Populiariausi straipsniai ir video

First complaint from business over lockdown restrictions reaches court (1)

Lithuanian business representatives on Wednesday lodged a complaint before a court seeking remedy...

Air Baltic launches flights from Vilnius

Air Baltic launched flights between Vilnius and the Croatian resort of Dubrovnik on Monday.

Lithuania gives the green light to large-scale investors with sweeping reforms (1)

The Parliament (Seimas) of the Republic of Lithuania has adopted a package of investment and corporate...

Maritime cluster has been founded in Lithuania

The business and educational organizations in Klaipeda are joining forces to develop the Lithuanian...

Public authorities getting closer to compromise on natl development bank

Lithuania’s public authorities are getting closer to a compromise on the establishment of a...

Top news

Media watchdog bans Russian broadcaster RT (2)

The Radio and Television Commission of Lithuania (LRTK) on Wednesday banned Russia's broadcaster RT...

First complaint from business over lockdown restrictions reaches court (1)

Lithuanian business representatives on Wednesday lodged a complaint before a court seeking remedy...

Self-isolation required for arrivals from 58 worst hit countries

The Ministry of Health has updated the list of countries most affected by coronavirus infection...

10 new coronavirus cases

On Tuesday, 10 new COVID-19 cases were confirmed in Lithuania. All of them imported or from already...

Vilnius centre becomes art gallery

Lithuanian capital Vilnius has turned its centre into an open-air art gallery . The outdoor...

|Maža didelių žinių kaina