"If the personal income tax is raised further, some people may give up their business and start looking for a job; others will become unemployed, and still others may retreat to the shadow (economy)," it quoted Swedbank Lithuania's chief economist, Nerijus Maciulis, as saying.

President Gitanas Nauseda has proposed to beef up spending on social protection and has identified an increase in the taxation of non-salaried income as a source of raising funds for the purpose.

Simonas Krepsta, the president's economic advisor, has told BNS that Nauseda's proposals are related to higher taxation of self-employment income as well as capital gains and dividends.