The Lithuanian parliament started on Thursday debates on a proposal to reintroduce a reduced 9 percent VAT rate on district heating in October through the end of the year.
Heating
© Shutterstock

The amendment to the Law on VAT passed the first reading in the Seimas with 94 votes in favor, three against and another three 34 abstentions.

The parliament will discuss the amendment under a fast-track procedure, with a final vote set for Sept. 19. The government is set to lose 11 million euros in budget revenue this year due to the VAT rate cut.

The government has earlier proposed to introduce a new 15 percent VAT rate starting next January and to apply it to district heating starting next January. This proposal will be tabled to the parliament along with next year's budget bill.

The VAT rate on district heating and hot water services was raised from 9 percent to the standard 21 percent in early June.

The Lithuanian Farmers and Greens Union in early July signed a deal with the Homeland Union–Lithuanian Christian Democrats under which the ruling party pledged to bring back the reduced VAT rate on heating in exchange for the opposition party's votes in favor of a state forest management reform.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lietuvos Energija is Acquiring a Wind Farm Development Project in Poland

Lietuvos Energija , a group of energy companies, further pursues the international strategy provided...

Latvenergo starts selling natural gas in Lithuania

Latvia's state energy company Latvenergo has started offering natural gas to its customers in...

Brussels preparing for talks with Russia on Baltic power systems

The European Commission is getting ready to start consultations with Russia over the switching of...

The biggest Lithuanian energy company expands in Poland

The Lithuanian state capital energy company group Lietuvos Energija moves forward with...

Eesti Gaas places order for the first LNG bunker vessel for North-East Baltic Sea

The leading Estonian energy company Eesti Gaas has placed an order for an LNG (liquefied natural gas)...