Latvia to increase VAT by 1% to 22%

19th November 2010

The Latvian government today announced a proposed 1% increase in the standard rate of VAT to 22% from 2011.  This rise is aimed at helping balance the state deficit.

Latvian VAT was last raised in 2009 from 18% to 21% under pressure from the IMF.  The Latvian reduced VAT rate also increased to 5% at the time.

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