Parliament slashes VAT

Parliament on Friday adopted the amendments to the Value Added Tax (VAT) Act unanimously with 123 votes in an effort to buffer the price hikes.

Under the amended law, the standard VAT rate of 25% is lowered to 13% on children’s food, edible oils and fats, butter and margarine, live animals, fresh meat and small goods, live and fresh fish, crabs, vegetables, fruit, eggs, seedlings and seeds, fertilizer and pesticides, animal fodder and tickets for concerts, sports and cultural events.

The reduced 13% VAT is also imposed on natural gas, heating from heating stations, firewood, pellets, briquettes and cuttings as well as menstrual products.

VAT on natural gas will additionally be temporarily reduced to 5% for the period from 1 April to 31 March 2023.