The reduced 9-percent VAT rate on district heating will remain in place until next June, the chairman of the ruling Lithuanian Peasant and Green Union (LPGU) said on Monday, admitting that municipalities have forced them to drop, at least for now, the idea of raising the rate to the standard 21 percent.
Euros and the heating
© DELFI / Kiril Čachovskij

Ramūnas Karbauskis confirmed to BNS that the parliament would vote on Tuesday on extending the reduced VAT rate on district heating.

"Municipalities are clearly boycotting our idea through public statements. I think that would even make sure that people line up (to claim compensation for heating costs)," he told BNS.

"We (the LPGU) will vote tomorrow to extend the reduced rate," he added.

Karbauskis noted, however, that next year's draft budget does not provide for funds to cover the loss of VAT revenue.

"Something will be affected. It may be the state's public investment program or something else," he said.

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