The Ministry of Agriculture will push for the preferential rate to be included in next year’s state budget.
“We cannot dash around – one year we introduce it, then cancel it, then reduce it again. We must ensure that this becomes a permanent norm,” the Latvian portal bb.lv quoted Augulis as saying.
According to earlier decisions, from July 1, 2026 in Latvia will start to operate a reduced VAT rate of 12% on certain types of essential products – bread, dairy products, poultry and eggs.
For the time being it is envisaged that the measure will be temporary and will remain in force for one year – until June 30, 2027.
Supporters of the preferential rate believe that it will help to keep prices for socially important products and support local producers. And also to reduce the shadow economy.
At the same time, the issue of extending the privilege after 2027 will depend on the budgetary capacity of the state and assessment of its impact on prices in stores.
