Lithuania proposes 2% VAT rise to 23%

1 December 2011

Following disappointing growth in the Lithuania economy, the Finance Ministry has suggested that a further VAT increase may be required in 2012. 

Lithuanian VAT is currently 21%.  It last raised its VAT rate at the end of 2009.

GDP growth for 2012 is now forecast to only reach 2.5%, compared to a target of almost 5% forecast earlier this year.  This has come about as the vital European Union market has struggled, and exports flagged.

This has prompted the Finance Ministry to suggest a 2% VAT rise.

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