“We should not make a drama out of something which is not. Those shopping trips to Poland, the so-called border trade which is happening here, is also happening across the world. The same thing is happening in Switzerland, and Scandinavia – where a half of Norway travel to Sweden for shopping because it’s cheaper there, ” she told news radio on Tuesday morning.
Antanavičienė also said such trips had no major impact on Lithuania’s economy and that any changes to Lithuania’s VAT rates should be carefully considered as it was the key source of government revenue.
“If we reduce budget revenue, we cannot think about increasing expenditure. VAT is our key source of revenue. For every one per cent we reduce VAT, we’ll lose €130 million in revenues,” the presidential adviser said.
There have been a range of calls for VAT reductions by Lithuanian politicians over the last number of weeks with a proposal to cut VAT on foodstuffs floated by the government.