The ruling coalition agreed to support the proposal of the Ministry of agriculture to reduce the rate of value added tax (VAT) in a typical Latvian fruits, berries and vegetables from 21% to 5%. The decision of the partners to the government after the meeting, the coalition said the Prime Minister Maris Kuchinskis, writes Gorod.lv.

As pointed out by benzamidine of Latvia, the VAT reduction will contribute to the development of the industry of horticulture and gardening and legal trafficking of these products on the market.

The Ministry of Finance and the Ministry of economy said earlier that do not support the initiative benzamidine.

So, the Finance Minister Dana Reizniece-Ozola said that to support the proposal of the Ministry of agriculture to reduce the rate of VAT from 21% to 5%, if certain conditions are met. In particular, the reduced VAT rate should help producers and buyers, leading to lower prices, not dealers, that it will be able to reduce their own costs.

The Ministry of Finance in this matter careful, but does not reject the proposal and can support it, if there is support for local producers, lower prices and if it will meet the budget priorities.

According to Reizniece-Ozola, the emphasis should be on production taxes to win were manufacturers, dealers and importers.

The Minister believes that reduced VAT on certain food groups can enter at a time, and then analyze the effect. The period may be three years.

Regarding the budget, Reizniece-Ozola, he can afford a reduction in taxes if the government will agree to consider it a priority.

Photo: fruit-inform.com