Seimas to decide on writing down emigrants' tax debts
Lithuania's parliament will decide whether the state should write down around 100 million euros in compulsory health insurance contributions unpaid by emigrants. If lawmakers back such a proposal, these contributions will no longer be calculated for and recovered from people who left Lithuania.
The Lithuanian Seimas on Tuesday gave its initial backing to the amendment to the Law on Declaration of the Place of Residence, proposed by Ramūnas Karbauskis, leader of the ruling Lithuanian Farmers and Greens Union, with 56 votes in favor, nine against and 25 abstentions.
The parliament will deliberate the amendment on Dec. 6 or later upon receipt of a government conclusion.
According to Karbauskais, these contributions are calculated for people who have not declared their emigration from Lithuania, with figures showing that one person fails to pay around 1,000 over three years, and now there are around 100,000 such people.
Under the proposed amendment, Lithuanian citizens will be deemed emigrated, if they pay social insurance contributions in the countries of the European Union, European Economic Area or Switzerland. In that case Lithuania's social insurance fund SoDra will exempt them from paying such contributions in Lithuania.
SoDra director Mindaugas Sinkevičius said earlier such a change would make life easier for emigrants, and also facilitate SoDra's activity.