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Lithuanian Prime Minister Algirdas Butkevičius says that the ruling coalition has left room for populism in the future when it rejected proposals to lift VAT exemption on heating. He says that the coalition should deliberate whether it has enough political will to admit that the VAT exemption should be left in place for an indefinite period.
Lithuanian PM disappointed with coalition for refusing to lift tax exemptions on heating
© DELFI / Tomas Vinickas

The PM says he is sorry that the coalition partners lack political will to make socially just decisions. If the exemption is extended for 2015, the government will have to find additional LTL 190 million (EUR 55 million) in the next year's budget.

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. In its 2015 national budget proposal, the Ministry of Finance suggested eliminating the exemption.

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