Lithuania will apply a reduced VAT rate of 9 percent for firewood starting next year, Prime Minister Saulius Skvernelis said on Tuesday.
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"In submitting next year's budget, the government and the political groups (in the Seimas) that make up the (ruling) coalition have agreed to propose to introduce a 9 percent reduced VAT rate for firewood -- not for all fossil solid fuels, but for firewood," he said on LRT Radio.

The reduced 9 percent VAT currently only applies to district heating and, therefore, is mostly enjoyed by those living in multi-apartment buildings.

Firewood, wood and straw pellets and briquettes are currently subject to the standard VAT rate of 21 percent.

According to data from the energy exchange Baltpool, prices for various types of fuel wood rose by 15-25 percent in the first half of this year.

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