The ruling coalition in Latvia agreed to support the proposal of the Ministry of agriculture to reduce the rate of value added tax (VAT) on typical Latvian fruits, berries and vegetables from 21% to 5%.
The decision was taken by the partners to the government after the meeting, said the Prime Minister Maris Kuchinskis, writes Gorod.lv.
As pointed out by Benzamidine of Latvia, the VAT reduction will contribute to the development of the industry of horticulture and gardening and legal trafficking of these products on the market.
The Ministry of Finance and the Ministry of economy said earlier that they do not support the initiative of Benzamidine.
So, the Finance Minister Dana Reizniece-Ozola said that they will support the proposal of the Ministry of agriculture to reduce the rate of VAT from 21% to 5%, if certain conditions are met. In particular, the reduced VAT rate should help producers and buyers, leading to lower prices.
Source: blackseagrain.net
