Lithuania should consider expanding the real estate tax base, Vitas Vasiliauskas, board chairman of the central Bank of Lithuania, says, doubting, however, such changes could be adopted during the existing "political cycle."
Gyvenamųjų namų projektas Baltupiuose
© Bendrovės archyvas

"We submitted our proposals on expanding the base (of the real estate tax – BNS Lithuania) last year. We perfectly realize that we could hardly speak about expanding the base during the existing political cycle. But the central bank is a marathon runner and our mission is to regularly repeat things which we find important. (…) We hope to get back to these proposals during the next political cycle," Vasiliauskas told a press conference on Tuesday.

In his words, the International Monetary Fund and European Commission have also made suggestions to Lithuania on the real estate tax, and the tax itself would increase the state's income and their redistribution.

"A real estate tax is in principle a neutral tax, it’s the least damaging and can be administered in the easiest possible way, therefore, it's an additional source of revenue. Having in mind our redistribution level, I believe it would be a fairly good thing to have it as classic. But that's already the prerogative of the executive government," Vasiliauskas said.

He did not provide any details on possible changed to real estate taxation but underlined that it should be expanded.

"I don't want to go into details but it should be a wider base covering in principle residential real estate and having differentiated rates based on the value of real estate. So, I'd say, the axis should be like this. But we need to have agreement first. It's fairly difficult to discuss this at this stage," Vasiliauskas said.

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

Producers: US tariffs to make dairies seek new markets

US import tariffs on Lithuanian dairy products will force exporters to look for new markets, the...

Cybersecurity expert in Vilnius: guard your cables and cords and never borrow from others (1)

Oct. 15th, 2019, Australia’s Deakin University Prof. Matthew Warren, Deputy Director of the Centre...

Dairy producers start feeling impact of rising US export duties

Lithuanian dairy producers say they have already felt the impact of duties , rising as of Friday,...

Nauseda doesn't expect EU budget deal by end of 2019

EU member states differ too much in their positions on the bloc's next multi-annual budget to...

Dairy products subject to 25 pct US import tariff

Lithuanian cheeses, yoghurts and other dairy products are now subject to a new 25-percent import...