The goal of the Union of Greens and Farmers (ZZS) is to find a compromise so that the reduced value-added tax (VAT) for fruits, vegetables and berries can be maintained in 2024, Harijs Rokpelnis, the chairman of the ZZS Saeima faction, said on Thursday in the Latvian Television program “Shodienas izjamas”.
It has already been reported that this year the period when the VAT reduced rate is applied to fresh fruits and vegetables in Latvia will end, that is, the full VAT rate of 21% is provided for fruits and vegetables in the next year’s budget.
Jānis Wittenbergs (NA) also pointed out that there is still enough time, the budget has not yet been submitted to the Saeima, and since it is about maintaining the existing rate and no additional budget funds are needed, maintaining the reduced VAT rate is still possible.
At the same time, explaining why the National Union (NA) proposed in the Saeima on Thursday to maintain the reduced VAT, although in the spring it rejected a similar proposal from ZZS, Wittenbergs pointed out that internal relations are important when being in a coalition. NA planned to talk about the reduced VAT in the budget negotiations.
On the other hand, Rokpelnis, explaining the decision of the ZZS Saeima faction to refrain from voting on the NA proposal, stated that it was a populist method. He explained that the position of ZZS has not changed in relation to the reduced VAT, but it must be taken into account in the budget of the establishment. He also pointed out that the vote of the deputies is one thing to be evaluated, but the technique and the direction of the process should also be taken into account.
He confirmed that the Ministry of Agriculture and the Ministry of Finance are currently working on solving the problem.
At the same time, Weinberg also criticized the budget priorities in the program, stating that currently the “budget framework” lacks a direction to promote development and export capacity.
Prime Minister Evika Silņa (JV) expressed that the coalition has agreed to support only local fruit and vegetable producers, not the entire circle of producers, by allocating three million euros for this in the next year’s budget.
The reduced VAT rate of 5% for fruits and vegetables is valid from January 1, 2018 to December 31 of this year.
Vegetables. Photo: Zane Bitere/ LETA
2023-10-26 18:43:26
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