As Lithuania's public debt is growing due to the coronavirus crisis, the country might need to raise some taxes in the futures. Their burden wouldn’t be as heavy on residents and the economy if the economic structure changed, Lithuanian Finance Minister Vilius Sapoka says.
Vilius Šapoka
Vilius Šapoka
© DELFI / Josvydas Elinskas

"Will we necessarily need to raise taxes? Well, of course, the true politicians who stand for election could say more on that and in what way we will do that. But speaking very rationally and pragmatically, I would say yes: if the economic structure changes towards higher added value, then the public acceptance of higher taxes would not be that painful and they would also not halt the economy," Sapoka told a conference on Lithuania's economy, organized by the Valstybe (State) magazine.

On the other hand, he added, if the structure of the country's economy does not change and no investment into changing the economy's DNA is made, and only taxes are raised, the country might be programmed for long-term stagnation.

"Southern EU countries are great examples of that. Big debts, big taxes as those debts have to be serviced. So I hope Lithuania will not take this path. And we still have room for raising taxes right now. These are taxes that are not so detrimental to economic growth, first of all, property taxes and taxes related to ecology," Sapoka said.

The minister said last summer that the 2021 budget's expenses meant for consumption should not be increased and there were no plans to raise taxes, excluding, probably, the environmental ones. The minister warned that one should think about the country's growing debt for it not to exceed the Maastricht criterion.

He told BNS then that the public debt should reach almost 50 percent GDP by the end of this year, compared to the Maastricht criterion of no more than 60 percent.

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

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...

Belarus confirms entry restrictions Lithuania, Latvia, Poland and Ukraine

The Belarusian government confirmed on Thursday night it had introduced restrictions for arrivals...

735 new coronavirus cases

On Thursday, 735 new COVID-19 cases were recorded in Lithuania . In total, 13 823 coronavirus cases...

Expert: coronavirus is rapidly spreading everywhere

The coronavirus is spreading everywhere and is doing so very rapidly, and the number of new cases is...

|Maža didelių žinių kaina