In Latvia, the reduced 5% rate for fresh fruits, berries and vegetables should be maintained next year as well, and according to the report from the Ministry of Agriculture, the Value Added Tax Law should be expanded with this as a separate regulation.
Director general of the Latvian Association of Agricultural Cooperatives (LLKA), Rolands Feldmanis, said he is happy to see the ministry support the preservation of reduced VAT rate: “Lower VAT creates better competition conditions for our producers because the influence of reduced VAT is not as severe towards import offers. We also hope the reduced rate will motivate people to consumer locally made vegetables.”
The Ministry’s report mentions that development indexes of the fruit and vegetable sectors are positive. Indexes show that between 2017 and 2022 these sectors have developed considerably. Both fruit and vegetable farms grew in size (+5%). The quality of products increased as well (+46%), as did export value (+77%).
Source: bnn-news.com