VILNIUS – The Seimas of Lithuania will not consider a proposal to set a reduced VAT rate all food products after lawmakers on Tuesday rejected a proposed amendment to the VAT law
Its initiator Jonas Pinskus, representing the Lithuanian Regions group, rejected opponents' accusations that retailers would benefit from the reduced VAT: "In Poland, they did not do this".
Meanwhile, Mykolas Majauskas, chairman of the Committee on Budget and Finance, pointed out that there's a tax on large supermarket chains in Poland, which influences their behavior.
Majauskas estimates that the state budget would lose some 400 million in revenue if a lower VAT rate on food products was introduced. He also suggests reducing the personal income tax and non-taxable income to boost people's income so that they can decide where to spend their money.