„So that winter does not catch us by surprise – I invite to restore the VAT relief for this heating season,“ writes the Mayor of Vilnius, Valdas Benkunskas.
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As the mayor states, due to the VAT relief for heating being abolished by the ruling Seimas and global events driving up energy prices, it is forecasted that this heating season in Lithuania will be 20% more expensive.
„For example, last October, the heating bill for a non-renovated 50 sq. m apartment in Vilnius (with 9% VAT relief) averaged 56 euros. In a similar apartment this October, after the relief was abolished and 21% VAT applied, the price, according to preliminary calculations, will average about 61 euros. Comparing the first heating season month of this and last year, the bill for residents may increase by about 9%. However, if the relief is restored, the price would not increase and would even be 2% lower.
And these are only October forecasts; remembering what last winter was like – it is logical to expect a greater price increase. Considering that events in the Middle East are driving inflation, it is necessary to protect Vilnius residents from even greater possible price increases. We can do this by not increasing their heating bills,“ writes V. Benkunskas.
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„Therefore, I appeal to the members of the Seimas and the Government with a proposal to restore the 9% VAT relief at least for the near term – as long as ongoing conflicts in the world continue to affect energy prices. After they end, discussions on the future of the VAT relief for heating could resume.
Already this February I said – the decision to abolish the relief is a ‘time bomb’ that will be especially painful for more than half of Vilnius residents because they live in Soviet-era apartment blocks, most of which are still not renovated. These Vilnius residents will be hit hardest by the price increase. Overall, all municipalities in Lithuania will be affected. Therefore, I urge national institutions to take immediate action and protect the residents,“ writes the mayor.
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