Lithuanian employers' organizations say they will commit not to reduce wages during the crisis if the parliament approves President Gitanas Nauseda's initiative to cut the personal income tax rate to 15 percent, from 20 percent, and increase the non-taxable income threshold by 50 euros.
Employers to commit not to cut wages if income tax is lowered
© DELFI / Andrius Ufartas

The Lithuanian Business Employers' Confederation and the president plan to sign a respective memorandum on Monday, Danas Arlauskas, the confederation's president, confirmed to BNS on Friday.

"We will sign on Monday a memorandum on reducing the income tax rate by five percentage points and increasing the non-taxable income threshold by 50 percent," Arlauskas told BNS.

"We will sign the memorandum with business organizations to commit ourselves not to reduce wages by as much as they will rise as a result of these tax measures," he added.

Nauseda will also sign the memorandum, Arlauskas said, adding that trade unions support the proposal, too.

However, Inga Ruginiene, the chairwoman of the Lithuanian Confederation of Trade Unions, said that trade unions had not yet decided whether to sign the memorandum, adding that the confederation's board was scheduled to vote on the issue later on Friday.

The president has tabled a bill that calls for lowering the personal income tax rate to 15 percent, from 20 percent, and bringing forward the planned increase of 50 euros in the non-taxable income threshold. The reduced rate would apply to labor income of up to three average monthly salaries and would be in place by the end of the year.

The Finance Ministry and Prime Minister Saulius Skvernelis do not back the proposed income tax cut.

The ministry says some employers are likely to use it to increase their liquidity by reducing gross wages while leaving net wages unchanged.

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

Minister: budget deficit to narrow, debt-to-GDP ratio to stabilize in 2021

The Lithuanian state's 2021 budget bill has been drafted with the aim of reducing the general...

One in 3 Lithuanians feels anxious about money

Thirty-nine percent of Lithuanians feel anxious about their finances every day, which adversely...

Simonyte: key budget issue is what to do with borrowed money (1)

The key question related to Lithuania's next year budget is what will be done with borrowed money...

Minister: Lithuania financially capable of withstanding another coronavirus outbreak

Lithuania would be financially capable of withstanding another coronavirus outbreak, Finance...

A new commercial bank has launched operations in Lithuania

PayRay , a Lithuanian financial sector company, has started a new page of its business service...

Top news

Only every 2nd resident would get coronavirus jab

Only half of Lithuanian residents would get a coronavirus vaccine once it is become available,...

Energy Minister: Moscow's note shows Baltics are taking right steps

Moscow 's call on Lithuania to review a new draft methodology for electricity trade between the...

China expresses resentment over Freedom Party's Taiwan independence support

The Chinese Embassy in Lithuania has on Friday expressed its resentment over the Lithuanian...

Nauseda urges to refrain from family gatherings on long weekend

Lithuanian President Gitanas Nauseda on Friday called on people to refrain from family gatherings this...

Health minister says nationwide quarantine possible

Lithuanian Health Minister Aurelijus Veryga on Friday did not rule out introducing a nationwide...

|Maža didelių žinių kaina