Spiralling global electricity and gas prices force another European country to introduce VAT subsidy
The Baltic state of Latvia is considering reassigning domestic electricity supplies from the standard VAT rate to 5% for 2023. The bill is now with Parliament. Any cut would include gas and heating wood. It would apply for the calendar year of 2023.
It would be the latest state in Europe to cut heating VAT rates as global energy prices continue to hit new highs this winter. On 7th December, EU Finance Ministers to grant more freedoms on reduced VAT rate setting. This would be implemented by 2024 at the latest. But member states may be able to act in the Spring of 2022 once the EU Parliament has passed a non-binding vote.
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