Government's tax plan aimed at increasing income for low, middle earners – finmin
A three-year tax overhaul plan, proposed by the Lithuanian government is aimed at increasing income for low and middle earners, as well as stepping up fight with shadow economy, Finance Minister Vilius Šapoka says.
"Tax overhaul is like building a house. (…) By asking support and assuming responsibility, I am inviting you to build this house together and not to try and destroy it," he told lawmakers, introducing the planned changes. "We must look for and agree on a common interest, as the house will collapse if we remove one wall or the roof."
The Seimas of Lithuania on Tuesday gave its initial backing to proposed amendment to the Law on Personal Income Tax, with 52 votes in favor, 28 against and 15 abstentions. The parliament plans to further discuss the proposed changes on Jun. 21.
The Lithuanian government is proposing increasing non-taxable income, merging social security premiums paid by employers and employees lowering social security premiums 2 percent and introducing a "ceiling" for social security premiums as well as transferring payment of basic pensions to the state budget.