According to the president, the state still cannot afford applying a tax exemption on public transport tickets. Grybauskaitė says that tensions on global financial markets have not subsided. This will have influence on Lithuania's economic situation and might impede the recovery of the economy. All political forces must make financially-responsible decisions regarding the budget for 2013, therefore, she refers back the amendments for reconsideration at parliament.
"We are going through a financially tough period, the possibilities of the state are limited, therefore the public money has to be spent rationally and carefully. By approving the VAT amendments, the Seimas gave in to the pre-election financial populism and jumbled several things of different importance in one law," she says.
It has been estimated that VAT reductions for public transport tickets would cost almost 70 million litas (20.3 million euros) for the state budget but the users of public transport still would not be guaranteed cheaper tickets. It has been proved that various VAT exemptions are useful for producers or service provider rather than for consumers.
2012 06 28
Lithuanian President refers back VAT reduction amendments
Lithuanian President Dalia Grybauskaitė has referred back to the Seimas the amendments to the law on VAT as she is against reduction of VAT for public transport.
The President disapproved of VAT exemptions for public transport tickets / Tomo Urbelionio/BFL nuotr.
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