Bloomberg News

Lithuanian Parliament Passes VAT Reductions for Press, Transport

June 26, 2012

Lithuanian lawmakers backed reducing valued-added tax for press, public transport tickets and car repairs for the disabled, sparking criticism from Prime Minister Andrius Kubilius.

Lawmakers passed the proposal 99-6, with 19 abstentions, according to a vote-count on the parliament’s website. The law cuts VAT for the disabled and on tickets, newspapers and magazines to 9 percent from a current rate of 21 percent starting Jan. 1.

The tax reductions may reduce budget revenue by 100 million litai ($36 million) next year, Kubilius said, adding that he will ask President Dalia Grybauskaite to veto the law amendments, the Baltic News Service reported today.

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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