The Organization for Economic Co-operation and Development (OECD) has suggested that Lithuania should scrap the existing VAT concession for hotels and restaurants.
The existing VAT concession for the catering sector expires at the end of this year. It was introduced last year to help businesses affected by the Covid-19 pandemic. Hotels have been subject to a 9% VAT rate since 2015, also set to expire late this year.
OECD has also proposed extending carbon pricing, especially in the transport and agriculture sectors, and investing in research and development and the expansion of green infrastructure. The organisation has also suggested introducing targeted solutions for small innovative companies as well as providing more autonomy to local authorities in setting local taxes.
On May 3, Finance Minister Gintare Skaiste discussed key insights and recommendations for Lithuania provided in the OECD’s draft Economic Survey for Lithuania. The report is scheduled to be discussed by the OECD’s Economic and Development Review Committee on June 13 in Paris. (LRT/Business World Magazine)