aA
A proposed tax on banking assets would make loans for households and businesses more expensive, the Lithuanian Banks' Association (LBA) warned on Tuesday.
Kraustymasis
Kraustymasis
© Adobe Stock

The Electoral Action of Poles in Lithuania–Christian Families Alliance has proposed to introduce a tax on bank assets to raise funds for social needs.

A preliminary impact analysis carried out by LBA shows that the proposed tax may push up prices for banking services by 8 percent.

"We estimate that services to customers may become by up to 8 percent more expensive, potentially costing every bank customer about 60 euro cents per month," Vilius Tamkvaitis, head of analysis at LBA, said at a news conference.

The new tax would cause long-term damage that could be four times as high its short-term benefit, he warned.

The association estimates that while the proposed tax would 100 bring in 100 million euros in extra budget revenue, the economy would lose between 150 million and 450 million euros.

LBA President Mantas Zalatorius says there are other ways of generating additional budget revenue.

"The first thing to speak about is the public sector's efficiency which is not the best (...). Also, we have already spoken about the fight against the shadow (economy)," Zalatorius said, adding that "it is not difficult to reclaim 100 million euros from the shadow (economy)" if there is the political will.

"There are also many other ways and reducing (tax) cuts is one of them. That palette of all possible solutions is on the table," he said.

Back in March 2016, the Electoral Action of Poles in Lithuania–Christian Families Alliance registered draft amendments that call for taxing financial institutions' assets worth over 100 million euros and insurance companies' assets worth over 50 million euros at an annual rate of 0.4 percent.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Šimonytė: Lithuania's budget deficit to exceed 5 pct of GDP next year

Lithuania's budget deficit in 2021 will "inevitably" exceed the current projection of 5 percent of...

Air Baltic launches new flight from Vilnius

Air Baltic is on Tuesday launching flights between Vilnius and Kiev .

EU commissioner: Lithuania should cut other taxes if environment taxes are raised

Europe takes the view that taxes need to be balanced and if some taxes are raised, other taxes should...

Capacity at Salcininkai border checkpoint might drop for 4 days in December

The capacity of the Salcininkai international border checkpoint on the Lithuanian-Belarusian border...

Online payment business predicts double turnover for e-shops during Black Friday sale

Black Friday , one of the biggest sale campaigns across the Western world, will be slightly different...

Top news

Office: president and Anusauskas' defense priorities match

The priorities of Lithuanian President Gitanas Nauseda and Arvydas Anusauskas , candidate for the...

Lithuania posts 4-fold surge in coronavirus infections for November

Coronavirus infections surged four-fold in Lithuania in November compared to October and around 10...

Šimonytė: Lithuania's budget deficit to exceed 5 pct of GDP next year

Lithuania's budget deficit in 2021 will "inevitably" exceed the current projection of 5 percent of...

2450 new coronavirus cases

On Wednesday, 2 450 new COVID-19 cases were recorded in Lithuania . In total, the country has already...

Salvatore Babones | D+ nariams

The Quad’s Malabar exercises point the way to an Asian NATO

India, Japan, Australia, and the United States have a good model if they want to keep the peace...

|Maža didelių žinių kaina