Lithuanian lawmakers backed government’s proposal to introduce a zero VAT rate on district heating for two more winter seasons after 111 MPs voted in favour and nine abstained.
As some MPs were concerned that the rate would apply to district heating only, Prime Minister Ingrida Simonyte pointed out that the state’s electricity and gas price compensation this year was higher than any VAT rate.
The difference between the gas price paid by consumers and the market price is about four times, she said.
According to the Finance Ministry, the state budget would lose around 54 million euros in revenue in the 2022-2023 heating season because of the VAT relief and would further lose 57 million euros in the 2023-2024 season, provided that prices remained at the same level as in the first half of 2023. (BNN/Business World Magazine)