aA
On Wednesday, the Cabinet of Lithuania rejected the proposal to introduce progressive rates of personal income tax in the country.
Lithuanian government rejects progressive taxation
© DELFI / Mindaugas Ažušilis

In the opinion of the Government, the current taxation system in Lithuania already contains progressive features, since differential deductions apply.

Also, the Government says, there is a high probability that, after the introduction of progressive personal income tax rates, Lithuania could become unattractive to highly skilled specialists, while pay-out of capital revenue could be transferred to other countries with lower tariffs. This, in turn, would undermine Lithuania's competitiveness.

Lithuania has a flat 15-percent personal income tax which applies to income after deducing the so-called non-taxable income which varies for different categories of earners.

The bill on introducing progressive personal income tax rates was drafted by Social Democratic MP Algirdas Sysas.

PM Algirdas Butkevičius has said that the tax scheme was rejected as labour income is already heavily taxed.

"We have chosen the other way of progressivity. We are increasing the non-taxable share of income from EUR 166 to EUR 200 to those with income lower than EUR 923, also, the share is increasing from EUR 60 to EUR 120 to families with children. This kind of progressivity is much more just than the other proposal by other MPs," the PM said on the radio Žinių Radijas on Thursday.

Elta EN
It is forbidden to copy the text of this publication without a written permission from ELTA.
|Populiariausi straipsniai ir video

Lithuania to renew flights to more German cities and Netherlands

On 27 May Lithuanian government has allowed renewing more flights to Germany and the Netherlands .

Pandemic emptied cinemas: will they survive?

In an attempt to evaluate the long-term effects of Covid-19 on cinema operators, the law firm...

One more flight to be resumed from Vilnius

Latvian airline airBaltic is resuming its Vilnius- Tallinn flights on Monday after the Lithuanian...

Lithuania lifts restrictions on anti-coronavirus product sales

The Lithuanian Health Minister on Thursday lifted restrictions on medical face masks , respirators,...

AirBaltic launches new route from Vilnius to Oslo

After receiving all of the necessary permissions, airBaltic announces that it plans to launch direct...

Top news

Lockdown extended until June 16

Lithuania’s government on Wednesday extended the coronavirus lockdown until June 16.

Special Investigation Service names biggest threat in country

Systemic corruption is the most dangerous and its initiators pose the biggest threat as experience...

Lithuania to renew flights to more German cities and Netherlands

On 27 May Lithuanian government has allowed renewing more flights to Germany and the Netherlands .

Lithuania appoints its new EU permanent representative

The Seimas of Lithuania has appointed Ruta Baneviciute as its new permanent representative to the...

8 new coronavirus cases

On Tuesday, 8 new coronavirus cases were detected in Lithuania. Since the outbreak of the pandemic,...

|Maža didelių žinių kaina