Lithuania's national road carriers' association LINAVA is staging a protest in Vilnius on Wednesday to pay attention to the government's decision to increase the tax rate on daily allowances of posted drivers.
Vilkikai prie Kalė uosto
Vilkikai prie Kalė uosto
© AP / Scanpix

The government decided in October that drivers' daily allowances would be tax free as of January, if their salary amounted to 1.65 of the minimum monthly salary, compared to the existing coefficient of 1.3.

LINAVA representatives want the coefficient not to be changed, saying that the increase could spark a wave of bankruptcies or the transfer of business abroad.

"We, representatives of the small business, it's the last opportunity to attract the government's attention and to make it wake up and recall its decisions that would simply bury small carriers," Mecislavas Atroskevicius, secretary general at LINAVA, said in a statement.

Carriers say the decision to increase the coefficient was made at a time when the EU is deliberating the Mobility Package which, they say, will further undermine their competitiveness in Europe.

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