Seimas votes to keep 9 pct. VAT on heating indefinitely

The Lithuanian parliament voted on Tuesday to keep a reduced 9 percent VAT rate on district heating in place indefinitely in a move that means that the cost of heating for around 700,000 households living in multi-apartment buildings can only change because of fuel prices.

The amendment to the Law on Value-Added Tax was passed in a vote of 85 to three with seven abstentions.

The parliament also approved a proposal to keep the reduced 9 percent VAT rate on hotel services in place until the end of 2022.

The state will next year lose 47 million euros in budget revenue due to the reduced VAT rate on heating and another 14 million euros due to the reduced rate on hotel services.

Source: BNS
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