The Latvian government has approved draft budget measures for 2026, including the application of a reduced VAT rate of 12% on basic foods, including milk, bread, poultry meat, and eggs from 1 July 2026 to 30 June 2027. The government also approved a EUR 40 increase in the basic personal allowance and minimum monthly wage to EUR 550 and EUR 780, respectively, in 2026. Lastly, the government appr…