Lithuanian parliament rejects opposition's anti-inflationary plan

VILNIUS – The Seimas of Lithuania did not approve any of the four proposals of the opposition's anti-inflationary package after it was introduced to the parliament on Tuesday, sending the draft amendments back to the initiators for improvement. 

"That reconciliation was pro forma," said MP Dainius Gaizauskas of the opposition Lithuanian Farmers and Greens Union after the last vote.  

"You clearly demonstrated by your actions that you do not need the opposition," said Aurelijus Veryga, another Farmers and Greens MP.  

The anti-inflationary plan was drawn up by five opposition parliamentary groups that returned to the main plenary hall on Tuesday after a boycott of almost two weeks.

As part of measures to reduce the financial burden on household consumers, the plan called for a zero VAT rate on heating, hot water and wood used for heating, and a reduced VAT rate of 9 percent on electricity and gas. 

The opposition also proposed to raise the non-taxable income threshold and lower excise duties on fuel. 

The Finance Ministry says the package would cost the state at least 1.2 billion euros and would further fuel inflation. 

Economists say the plan is populist and should not be adopted because it would force the state into debt and worsen its situation. The ruling bloc sees the package as part of preparations by the opposition parties for next year's municipal elections.