VILNIUS – As prices continue to rise fast in Lithuania, increasing the minimum wage or pensions is not enough, Lithuanian President Gitanas Nauseda says, adding that tax policy changes or temporary tax cuts on certain products and services with regulated prices are necessary.
"We have to think about tax policy changes. I really do not want to promote the idea that we now need to cut the VAT for all products or introduce reduced VAT rates, but to at least look into neighboring countries' experience and see whether we could apply such measures temporarily and just for certain products, especially the ones that have regulated prices," the president said in an interview with the country's public broadcaster LRT on Thursday.
The Lithuanian government, however, has now plans yet to follow into the steps of neighboring Poland and cut the VAT rate on food. But it is already considering further cutting the already reduced VAT rate on heating from 9 to 5 percent.