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Latvian PM: state could cover hotel losses

2009-01-15

In an apparent backtrack from earlier statements, Latvian Prime Minister Ivars Godmanis now concedes that the state could compensate for losses incurred by hotels from contracts with suppliers signed last year, before the vastly increased VAT rate for hotel services was agreed by the government. VAT for accommodation services has been raised from 5 to 21 percent, effective from January 1. Compensation for losses would refer to deals with clients who signed agreements before December 12, 2007.

 

Diena, 2009-01-14

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