On Thursday, the Saeima rejected five different amendments to the value-added tax (VAT) law proposed by opposition parties. All these amendments provided for a reduction of the VAT rate to 5% on a number of energy resources used for household purposes.
One party proposed to lower the VAT rate on central heating and wood fuel from January 1, 2026, to April 30, 2026, during the harsh winter, which would reduce the final payments for households.
Another proposed to apply a reduced tax rate of 5% to supplies of wood fuel, heat, natural gas, gas supply and distribution services, as well as to electricity, distribution services, and the mandatory purchase component.
It also suggested that property managers, landlords, and others who receive payment for wood fuel and heat energy from residents under a contract and transfer the entire amount to registered taxpayers apply the reduced VAT rate of 5% to residents' bills.
Earlier, Minister of Economy Viktor Valainis acknowledged that due to low temperatures this winter, heating costs for households could significantly increase.
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