Retail trade networks plan to adopt an honest reduced VAT rate for fresh vegetables, fruit and berries, as agreed upon by Agriculture Ministry, Latvian Traders Association and Latvian Federation of Food Enterprises.
The ministry plans to submit a report to the government on the reduction of VAT to 5% on fresh vegetables, fruit and berries, which was originally proposed by the ministry’s work group. After presenting the report, the ministry will ask the government to perform the necessary legislative changes.
“I am happy that Agriculture Ministry’s work group came to the conclusion that Latvia can afford to reduce VAT on fresh vegetables, fruit and berries to 5%. This will help increase the share of these products on the market and thereby benefit residents. We came to this decision thanks to constructive work performed by Agriculture Ministry, producers, traders and NGOs,” says Agriculture Minister Janis Duklavs.
Agriculture Ministry had previously reported that the work group’s experts agreed to ask the government to reduce VAT on vegetables, fruit and berries to 5% (from 21%). Experts agreed that VAT should be reduced for vegetables, fruits and berries that can be grown in Latvia. (BNN/Business World Magazine)
