Labour party proposes huge cut in VAT

Lithuania’s Labour party are proposing to cut VAT on basic food products from 21% to 5% under new proposals.

“We propose to reduce VAT from 21% to 5% to food products: bread, fresh meat, fish, pasta and so on. In our opinion, the VAT reduction should reduce commodity prices accordingly,” said Labour Party leader Valentinas Mazuronis on Žinių radijas.

However, other parties accused the party of opportunism and populism.

“This is an standard populist promise. They had four years to that [in government], it is clear that such promises remained promises. Such decisions have not been taken because they speak about one thing but probably thought about something entirely different,” said Mykolas Majauskas of the conservative Homeland Union, an opposition party.

Žinių Radijas