“VAT reduction on food under such circumstances would unfortunately remain unnoticed by people. The example of VAT relief for restaurants and catering enterprises is a great example, even though it was introduced not as a means to reduce prices but as a certain subsidy for business,” Šimonytė said in an interview to the public radio LRT on Thursday.
The head of Government stated that prices would continue to grow even if VAT was lower. She gave Poland as another example of this.
“Despite VAT reliefs, despite lower excise duties, other decisions, despite the central bank having set a very high interest rate in Poland, inflation is nevertheless in double figures there as well,” said the prime minister.
“The international geopolitical and economic situation is simply very unfavourable and such discrete decisions would bring very little benefit,” said Šimonytė, adding that it would be more beneficial if people’s income increased.
What is more, she said the Government was not planning proposals to reduce taxes or excise duties.
