Bloomberg News

Lithuania Won’t Cut VAT to Secure Euro Adoption in 2014, LR Says

May 02, 2012

Lithuania doesn’t plan to follow neighboring Latvia by cutting the value-added tax to slow inflation and help euro adoption in 2014, Lietuvos Rytas reported, citing Finance Minister Ingrida Simonyte.

Lowering VAT would threaten the Baltic nation’s target of trimming this year’s budget deficit to 3 percent of gross domestic product, the newspaper cited the finance minister as saying.

Latvia plans to cut VAT by one percentage point to 21 percent in July to slow inflation as it seeks to adopt the euro in two years, Finance Minister Andris Vilks said April 27.

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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