So far no one in the ruling coalition in Latvia has voiced any objections against reduction of VAT rate for electrical energy and natural gas. However, it is necessary to reach an agreement on specific solutions, said Minister of Economics Janis Vitenbergs has said.
The minister said one of the issues that required the government to reach an agreement on is the term for VAT reduction, because everyone was in agreement that the reduction should be limited in term. However, opinions about the length of the term differ.
The politician estimates that the ministry’s proposed solution would help reduce electricity bills by more than 40% for residents.
According to Vitenbergs, the issue of energy resource prices is one of the primary ones for the government to work on, because heating and electricity compose the main costs for households in Latvia.
Vitenbergs said other decisions in regards to support for residents were possible, such as increase of support for protected electricity consumers.
Minister of Welfare Gatis Eglitis said he planned to suggest providing support using housing benefit solutions, proposing for the state to take on half of the costs associated with this benefit and for the other half to remain in the hands of municipalities.
This division of costs would be limited to the winter season. (BNN/Business World Magazine)
