With about six months left to the next general election, cutting taxes is all the rage in the Lithuanian parliament. MPs have submitted several bills suggesting cutting value-added tax (VAT). Some proposals have been discussed more extensively than others, but there is still no clear agreement on a number of points concerning the cuts.
Five issues in particular have to be resolved before all sides can agree on VAT cuts.
First, should the VAT rate be cut for all goods and services or should just particular groups of products, like staple foods get VAT exemptions? If the latter option is politicians want to go with, which p