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VAT rate in Latvia will be reduced from July 1
Alla Petrova, BC, Riga, 24.05.2012.
Print version
Print versionThe value added tax (VAT) rate in Latvia will be reduced from the current 22% to 21% on July 1 of 2012, according to amendments on the Law on VAT Rate passed in the final reading by Saeima today.
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The reduction of the VAT rate from 22 to 21% this year will leave the budget with LVL 16.5 million less in revenue this year, and LVL 40.5 million less in revenue in 2013, writes LETA.
The Finance Ministry explains that reducing the VAT rate will improve Latvia's competitiveness in the region and reduce the pressure of inflation on Latvia's residents.
The lower VAT rate will also be closer to Lithuanian and Estonian VAT rates - 21% and 20% respectively.
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