aA
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.

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

Skvernelis: no plans to put economy on hold if 2nd coronavirus wave comes

The whole economy or its individual sectors in Lithuania will not be put on hold if a second...

Lithuania plans to establish anti-money laundering competence center

Lithuania plans to establish an anti-money laundering competence center as the Nordic and Baltic...

Minister: direct EU payments to farmers should be capped at EUR 100,000

Direct EU payments to Lithuanian farmer s in 2021-2027 should be capped at 100,000 euros,...

To start or not to start fintech company during recession?

Microsoft, IBM, HP, Disney, FedEx, 3M. What do these companies have in common? They started their...

Lithuania asks Slovenia to hand over detained businessman Kucinskas

Lithuania's Prosecutor General's Office has asked Slovenia to hand over Vidmantas Kucinskas , the...

Top news

Skvernelis: no plans to put economy on hold if 2nd coronavirus wave comes

The whole economy or its individual sectors in Lithuania will not be put on hold if a second...

Arrivals from 5 new countries must isolate in Lithuania

Mandatory 14-day self-isolation for Lithuanians returning from Poland , the Netherlands , Iceland...

Most influential politicians named

Lithuanian experts consider the country's Prime Minister Saulius Skvernelis, Ramunas Karbauskis,...

13 new coronavirus cases

On Sunday, 13 new COVID-19 cases were confirmed in Lithuania. In total, 2265 cases have been recorded...

Minister: direct EU payments to farmers should be capped at EUR 100,000

Direct EU payments to Lithuanian farmer s in 2021-2027 should be capped at 100,000 euros,...

|Maža didelių žinių kaina