Social Democrat member of the Seimas Birutė Vesaitė is against the plans to lift the VAT exemption on heating.
MP Birutė Vėsaitė
© DELFI / Tomas Vinickas

The MP says that the VAT for heating should be increased at least from 1 July.

"I am against the increase of VAT in this case. The renovation process has not yet gathered momentum, many people still live in poorly insulated apartments, they are the most socially-vulnerable - young families with children and retired people. I would not like to see working people to be below the limit which allows compensations for heating. I believe that VAT increase for heating is premature. Another issue is huge accumulated debts to the heating sector and people cannot afford to pay off them in summer," Vesaitė said during a press conference at the Seimas.

In her opinion, the tax changes should not be rushed also for the reason that the largest cities, Kaunas and Vilnius, are still gradually shifting to biofuels.

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.

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