The Lithuanian government may delay presenting a planned tax reform and, even if the bill reaches the parliament during its spring session, implementing the changes may be pushed back until a much later date.
Prime Minister Ingrida Simonyte said that she basically agreed that “such issues must be discussed rationally and pragmatically, considering the evolving situation”.
She said, however, that “ideas of introducing new tax exemptions should be shelved, at least for some time”, unless some tax raises were to be considered.
“We will monitor the situation evolving in Lithuania, in the region and in the world, economic developments. We are pragmatic and will take decisions on tax changes after considering various factors, including the economic wellbeing of the state, and forecasts, budget execution, the situation of businesses, prices, the effect of sanctions on Russia, etc.,” Simonyte said.
Even if the government decides to submit the proposed tax changes to the parliament during its spring session, it might simultaneously propose a much later date for when they would come into effect, she noted.
“Actually, such bills are not to come into effect before January 1, 2023, and their implementation may be further postponed, for instance, until 2024 or 2025,” the prime minister said.
The government earlier decided to submit, in March and April, various amendments to tax legislation reviewing indefinite tax exemptions and other special tax treatments. (LRT/Business World Magazine)
