Lithuania, Markets and Companies, Retail, Taxation

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 11:13

Rimi Baltic CEO finds Baltic VAT rates on food products unreasonably high

BC, Vilnius, 17.09.2019.Print version
The chief executive officer of the supermarket chain Rimi Baltic thinks that VAT rates on food products in the Baltic countries are unreasonably high, according to the business daily Verslo Zinios reported writes LETA./BNS.

"In Poland, it (the rate) is as low as 6 percent, so it is incomprehensible why the value added tax in the Baltic countries is more than twice as high," it quoted Edgar Sesemann as saying. 

"The size of the tax creates price differences between Lithuania and Poland and reduces the competitiveness of Lithuanian companies," he added.  


With some politicians calling for raising taxes for major retailers, Sesemann said that higher taxes would lead to an increase in prices. 


The Electoral Action of Poles in Lithuania–Christian Families Alliance, which is now part of the ruling coalition, has said that the state should tax banking assets and major retail chains to raise money for social needs. 


In Lithuania, food products are taxed at the standard tax rate of 21%.  






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