Baltic States – CIS, Foodstuff, Legislation, Lithuania, Markets and Companies, Taxation

"We have never said that value added tax (VAT) exemptions in dairy sector would solve any problems. In dairy sector, it would help people who have low income to buy the same amount of dairy products at a lower price (). The support in dairy industry is necessary not for compensating our losses or unsold production, we do not ask for it. The support is necessary to buy everyday the surplus of 1,400 tonnes of milk, which was used previously for products for Russia, and now there is nowhere to sell it as all the markets are flooded," said Trumpa after the Cabinet meeting on Wednesday.

According to him, the simplest way to address the issue is to provide farmers with direct support for some time, for two or three months. Trumpa says that if necessary measures are not taken, the volume of production may decline by a third.

As reported, on 7 August Russia enforced a one-year-long embargo on the majority of food products imported from the United States, the European Union and other Western countries that supported sanctions against Russia.