Lithuanian VAT increase proposed
Thursday June 18, 2009
Ministers in Lithuania have agreed a package of financial measures which will see the rate of VAT in the country increase.
The tax will be upped by two per cent to 21 per cent, as part of plans to ensure the country is well placed to cope with the impact of the global economic crisis.
According to AFP, benefits for parents are also set to be cut, while public sector pay packets will also be reduced by around ten per cent.
Andrius Kubilius, prime minister of the country, said the changes were needed to ensure the government’s budget deficit does not continue to increase.
"If we do nothing, the deficit may reach eight to ten per cent next year," he added.
According to the Baltic Business News, another European country considering a VAT increase is Latvia.
The rate could rise to up to 23 per cent over plans unveiled by the government.