A bill has been introduced in Lithuania’s parliament to reduce the standard rate of value-added tax from 21 to 18 percent.
The bill, introduced on April 23, 2019, is intended to reverse an increase in the standard rate of VAT from 18 to 21 percent which took place during the financial crisis and which was initially intended as a temporary measure to help balance the Government’s Budget.
According to the explanatory memorandum to the bill, lowering the standard VAT rate to 18 percent will boost the economy, reduce prices and assist efforts to reduce the shadow economy. If approved, the new standard rate would be effective from 2020.
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