2013-09-02 14:22

Analyst doubts constitutionality of VAT exemption for heating

Nerijus Mačiulis, chief economist with Lithuania’s Swedbank, believes that the Constitutional Court could look into certain VAT reliefs in force in Lithuania, the Veidas weekly reports.
Nerijus Mačiulis
Nerijus Mačiulis / BFL nuotr.

In particular, a relief for centrally-supplied heat raised doubts about equal rights, responsible management, legitimate expectations, freedom of competition and social solidarity, he has said.

The analyst believes that the VAT relief for heat is most advantageous for the owners of the biggest housing units. Accordingly, this relief is regressive since it mostly benefits the rich.

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