The Lithuanian government will propose to temporarily apply a zero VAT rate to district heating for households as heating bills have soared to record highs this season, Finance Minister Gintare Skaiste said on Tuesday.
The measure would cost the state budget around 23 million euros. “The current reduced 9 percent VAT rate would be covered from the state budget and reduced to zero for households,” she told a news conference. “This means that households will pay no VAT on district heating this heating season.” She said the zero rate could be in effect from January 1 to the end of the heating season in late April. Currently, a reduced VAT rate of 9 percent applies to district heating.
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