Lithuanian Prime Minister Ingrida Simonyte expects the parliament to start debating the planned tax reform in its spring session.
“The Finance Ministry has drafted a good reform model,” Simonyte said. “Last spring, when the situation was uncertain, we said that the reform should be postponed. Now, we see that we can return to this discussion.”
According to the prime minister, the reform could involve a review of tax exemptions and privileges, as well as new incentives to invest, but the changes would not come into force this or next year.
“We should be talking about a long-term reform. It would also include some things that I think are necessary, such as investment accounts to encourage people to invest,” Simonyte said.
President Gitanas Nauseda has said recently that he doubts that the current ruling coalition will implement tax reform and expects the next parliament to do so.
According to the president, a tax reform group set up by the Finance Ministry has achieved a “zero result”.
The available information suggests that the ruling bloc will propose to tax personal income more evenly, with the tax being less dependent on the type of activity.
A new property tax model has also been developed. Under the model, a person would not pay tax on the dwelling in which they live if it is valued at less than the median value of the real estate in their municipality, while subsequent dwellings would be taxed at a rate of up to 1%. (LRT/Business World Magazine)
