"We in the government do not object to a reduced VAT rate for periodicals, but nothing more," he told the Lithuanian Radio.
The Lithuanian parliament is scheduled to vote on the proposal to apply a reduced VAT rate to periodicals. Lawmakers should also decide whether to also apply the reduced 9 percent VAT to public transport tickets.
The prime minister said that various proposals on VAT breaks brought forwards by lawmakers were not only irrational but also dangerous as the budget would not be collect if they were adopted.
"If we adopted them all, then the state budget would lose almost LTL 1 billion (EUR 0.29 billion). The question is in what way schools and hospital would be funded in that case," Kubilius said.
Currently, reduced VAT rates apply to district heating and hot water, and state-subsidized medication.
2012 06 19
Lithuanian Government backs VAT exemption for periodicals only
The Lithuanian government is not against a VAT break for periodicals, but would not back other proposals on reduced VAT rates as the budget would lose revenues, Prime Minister Andrius Kubilius has said on Tuesday.
Andrius Kubilius / Andriaus Ufarto/BFL nuotr.
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