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Enough signatures collected to propose reducing VAT on food products

Dec 27, 2012

RIGA - More than 10,300 signatures have been collected in favor of lowering value added tax (VAT) on food products.

This means that the petition can now be submitted to Saeima.

The petition was posted on the public initiative platform "www.manabalss.lv" in August 2011. Its author, Normunds Grostins, explains that the majority of Latvian residents spend around one-third of their income on food, which is considerably more than in other European Union member state, and calls for a reduction in VAT on food.

Grostins points out that Latvia, Estonia and Denmark are the only EU member states that have not lowered VAT on food and adds that the EU allows to reduce VAT on food, medicine, theater and museum tickets, as well as other goods and services.

The ruling coalition, however, is mostly skeptical about the proposal.

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