Representatives from major non-governmental agricultural organizations are meeting with President Egils Rinkēvičs today to discuss the situation in the industry.
During the meeting, the impact of the government's plans to increase the value-added tax (VAT) on Latvian vegetables, fruits, and berries on the country's economy and producers will be discussed.
Participants in the meeting include representatives from the Peasants' Sejm, the Council for Cooperation of Agricultural Organizations, the Latvian Fruit Growers Association, cooperatives "Mūsmāju dārzeņi" and "Baltijas dārzeņi." Together, these organizations represent nearly 15,000 Latvian farmers.
As reported, more than 10,000 signatures have been collected in support of maintaining the existing reduced 5% VAT on fruits, vegetables, and berries. This initiative will be submitted for consideration in the Sejm.
The government coalition has agreed to apply a reduced VAT rate of 12% to fresh fruits and vegetables. The government will prepare a corresponding proposal for the second reading of the 2024 budget bill.
Prime Minister Līnija Egi says the coalition has agreed to support only local fruit and vegetable producers, allocating 3 million euros in the budget for this purpose in the coming year.
As previously reported by the Ministry of Agriculture, the fruit and vegetable sector in Latvia has significantly grown from 2017 to 2022 - the areas of fruit and vegetable crops have increased by 5%, the value of produced goods by 46%, and the export value by 77%.
The ministry also noted that Latvia's fruit and vegetable sector is developing faster than the average in the European Union (EU). The value of fruit and berry products produced in Latvia has doubled, ranking third in the EU after Luxembourg and Slovenia. The value of vegetable products produced in Latvia increased by 25%, exceeding the EU average, and potatoes increased by 57%, placing Latvia in sixth place.
The reduced 5% VAT rate on fruit and vegetable products has been in effect from January 1, 2018, to December 31 of this year.
source: bb.lv
