Lithuania's Finance Minister-Designate Vilius Šapoka says that value-added tax (VAT) privileges for heating of homes is a faulty scheme, which will, however, continue until the end of this heating season.
Vilius Šapoka
© DELFI / Karolina Pansevič

"We will discuss the issue, I have no direct answer yet. But everyone probably understands well that the the character of the privilege is faulty, as it is used by the residents who need the privilege and those who are, in the back of their minds, ashamed of using it," Sapoka said in an interview to BNS.

Asked whether the privilege would be extended until June of 2017, the future finance minister said that a decision would be taken shortly.

In Sapoka's words, the new government will also decide on other VAT privileges, for instance, the 5-percent VAT tariff on expensive medication not compensated by the state.

Currently, the privilege VAT on heating is 9 percent, while the standard is 21 percent.

Swedbank's pension funds invest EUR 200 mln into sustainable business

Pension funds managed by the Swedbank financial group are investing 200 million euros, or a sixth...

Belarus complains: Lithuania's blocking Minsk-EU agreement

Belarusian representatives complained in Brussels last week that Lithuania is blocking the...

New trends in startup world: unicorns' aspiration is not key anymore

The question when the first unicorn with over 1 billion of US dollars in value will appear in the...

Shopping frenzy: biggest retail chains plans allocate millions of euros for new stores

Lithuania's five biggest retail chains – Maxima , Lidl , Rimi, Iki and Norfa – have...

Construction launched on EUR 15 mln hotel in Kaunas

Construction is being launched on a 15-million-euro Moxy hotel, part of the Marriott Group , in...