Today, an agreement was signed at the Ministry of Economics with food traders and retail representatives, aimed at fully ensuring the reduction of the value-added tax (VAT) rate from 21% to 12% on certain essential food products in stores starting from July 1 of this year.
During the meeting, an agreement was reached on the fair transfer of the VAT rate reduction. Its goal is to ensure that the final prices in stores fully reflect the reduction of the VAT rate from 21% to 12% on bread, fresh milk, fresh chilled poultry meat, and fresh poultry eggs.
An addendum to the memorandum on food trade was also signed.
The purpose of the amended memorandum is to increase the availability of essential food products for the residents of Latvia by expanding the range of low-priced products in the shopping basket, improving their recognition and visibility, as well as promoting a change in consumer habits towards a conscious choice of products from Latvian manufacturers.
The parties signing the memorandum agreed to expand the offering of the low-priced product basket by adding items in ten product categories and also committed to considering the possibility of conducting a national campaign to expand the range of local products.
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