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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 22:41

Lithuanian meat processors: high VAT impedes competition with Poland

BC, Vilnius, 14.08.2014.Print version
As dairy processing companies claim that in the face of the Russian embargo farmers should be supported instead of processors, Lithuanian meat processing companies are interested in a lower rate of value added tax (VAT), reports LETA/ELTA.

According to Virginijus Kantauskas, Director General of Lithuania-based meat processing company Biovela, for the Lithuanian meat sold in supermarkets and stores it is difficult to compete with the Polish meat products sold in marketplaces.

 

"The issue of VAT changes everything fundamentally. Today, marketplaces sell production for approximately LTL 800 million (EUR 232 million), officially only LTL 270 million (EUR 78.2 million) are shown and LTL 2 million (EUR 580,000) of taxes is paid. When buying from us, supermarkets have to compete with them in marketing and so on. A true farmer should trade in a marketplace, who should receive support from us: as businessmen to our partners we could slaughter their animals so that the production was safe in terms of sanitary requirements. Marketplaces should not trade in production of other countries, which is exported," said Kantauskas.

 

According to him, negotiations with major retail companies have already taken place, and soon meat production intended for Russia's market at a discount of 20-30% will reach stores in Lithuania.






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