VILNIUS — Another bill to reduce the Lithuanian value-added tax on certain sectors, a controversial issue since the anti-crisis plan jacked up the tax rate at the beginning of 2009, has been proposed in the country’s parliament.

Seimas member Saulius Stoma of the Homeland Union/Christian Democrat Party has submitted amendments to the Value-Added Tax Act, currently under debate in the Seimas, to reduce taxes on various products and help boost business. The government increased VAT across the board in [private_supervisor]2009 and removed all exemptions for various sales despite cries of anger, particularly from the hotel industry and media. Now a flat tax of 21 percent exists for all goods and services sold in the country.

Stoma has suggested that the tax rate be lowered to 9 percent for media outlets, art and culture events, sports events, museums, zoos and visiting universities. Medicine, heating and books would also benefit from a lessened tax rate.

“The current Value Added Tax Act provides that a reduced 9 percent VAT rate for books and non-periodical publications and the drug starts from Dec. 31, 2011, and for heat energy starts Aug. 31, 2011. Given the economic situation in Lithuania and the plight of people in the situation, I suggest that the reduced VAT rates be applied now and continuously to prevent price increases after the expiry of preferential VAT,” Stoma said.

Whether Stoma’s proposal moves forward remains to be seen. Other bills to resume the VAT exemptions for certain industries have stalled in the Seimas. [/private_supervisor] [private_subscription 1 month]2009 and removed all exemptions for various sales despite cries of anger, particularly from the hotel industry and media. Now a flat tax of 21 percent exists for all goods and services sold in the country.

Stoma has suggested that the tax rate be lowered to 9 percent for media outlets, art and culture events, sports events, museums, zoos and visiting universities. Medicine, heating and books would also benefit from a lessened tax rate.

“The current Value Added Tax Act provides that a reduced 9 percent VAT rate for books and non-periodical publications and the drug starts from Dec. 31, 2011, and for heat energy starts Aug. 31, 2011. Given the economic situation in Lithuania and the plight of people in the situation, I suggest that the reduced VAT rates be applied now and continuously to prevent price increases after the expiry of preferential VAT,” Stoma said.

Whether Stoma’s proposal moves forward remains to be seen. Other bills to resume the VAT exemptions for certain industries have stalled in the Seimas. [/private_subscription 1 month] [private_subscription 4 months]2009 and removed all exemptions for various sales despite cries of anger, particularly from the hotel industry and media. Now a flat tax of 21 percent exists for all goods and services sold in the country.

Stoma has suggested that the tax rate be lowered to 9 percent for media outlets, art and culture events, sports events, museums, zoos and visiting universities. Medicine, heating and books would also benefit from a lessened tax rate.

“The current Value Added Tax Act provides that a reduced 9 percent VAT rate for books and non-periodical publications and the drug starts from Dec. 31, 2011, and for heat energy starts Aug. 31, 2011. Given the economic situation in Lithuania and the plight of people in the situation, I suggest that the reduced VAT rates be applied now and continuously to prevent price increases after the expiry of preferential VAT,” Stoma said.

Whether Stoma’s proposal moves forward remains to be seen. Other bills to resume the VAT exemptions for certain industries have stalled in the Seimas. [/private_subscription 4 months] [private_subscription 1 year]2009 and removed all exemptions for various sales despite cries of anger, particularly from the hotel industry and media. Now a flat tax of 21 percent exists for all goods and services sold in the country.

Stoma has suggested that the tax rate be lowered to 9 percent for media outlets, art and culture events, sports events, museums, zoos and visiting universities. Medicine, heating and books would also benefit from a lessened tax rate.

“The current Value Added Tax Act provides that a reduced 9 percent VAT rate for books and non-periodical publications and the drug starts from Dec. 31, 2011, and for heat energy starts Aug. 31, 2011. Given the economic situation in Lithuania and the plight of people in the situation, I suggest that the reduced VAT rates be applied now and continuously to prevent price increases after the expiry of preferential VAT,” Stoma said.

Whether Stoma’s proposal moves forward remains to be seen. Other bills to resume the VAT exemptions for certain industries have stalled in the Seimas. [/private_subscription 1 year]

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