The law provides for the continuation of the application of the reduced VAT rate of 12% on certain fresh fruit, berries and vegetables, including washed, peeled, shelled, cut, and packaged, but not cooked or otherwise processed (for example, frozen, salted, dried).
The authors of the draft law argue that a lower VAT rate on fruits, berries and vegetables grown in Latvia could have a positive impact on the population by making these products more affordable.
The Saeima rejected an opposition proposal to cut VAT further, to 5%.
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