Lithuania's government will next year discuss the possibility of reducing the value-added tax (VAT) tariff, Prime Minister Saulius Skvernelis told Verslo Žinios business daily.
Saulius Skvernelis
© DELFI / Karolina Pansevič

"Even this year I have repeatedly made suggestions to the Finance Ministry to discuss the possibility of lowering the general VAT tariff by at least one percentage point. However, risks of the step are significant. Therefore, we have agreed to next year look at the possibility of lowering the VAT tariff in 2019-2020, after we had implemented the current proposals on tax system reforms," the prime minister told the daily.

The 21-percent VAT tariff was established back during the financial crisis in an effort to ensure additional budget revenue, which were necessary to cut the fiscal deficit and ensure financial stability until the end of the downturn. Then government of Andrius Kubilius said that the VAT tariff would be only raised temporarily until the end of the financial crisis.

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