"We already spoke about it three weeks ago that financing potential was available. The budget is collected well. As the earlier level (of 9 pct) is no longer planned, it could be 15 percent, not 21 percent, which means the tariff would be reduced," Pranckietis told Žinių Radijas news radio on Wednesday morning.

In his words, the reduced VAT tariff will probably be long-term, not a temporary privilege.

After the ruling Social Democrats refused to support the reform of the forestry sector, the ruling Lithuanian Farmers and Greens Union on Tuesday secured support of the opposition conservatives on the pledge of a lower VAT tariff on heating.

From June, the usual 21 percent VAT is applied on centralized heating.