Participation in the 2nd pillar of the pension scheme should be further encouraged, says Lithuania's Finance Minister Vilius Šapoka, citing payments made by employees and employers and the possibility redeem part of the income tax.
© Shutterstock

"Speaking about the reform of the second pillar, I believe there should be motivation to contribute with one's own money, as currently there is no possibility for people to join the second pillar and benefit from the reduced residents' income tax. I believe there should be no restriction of the possibility for both employers and people to join the second pillar scheme," Šapoka told journalists on Tuesday after attending a meeting of the prime minister and ministers on structural reforms, including the tax revision.

In his words, the government's final proposal on restructuring of the pension and tax system will be submitted in mid-April.

Social Security and Labor Minister Linas Kukuraitis said that the Sodra and individual pension schemes should not be set against each other.

At the meeting on Tuesday, the ministers discussed proposed education, tax, pension and innovations reforms. Šapoka restated continued efforts to boost the population's income and lower the tax burden in connection to labor relations. The government has also pledged to continue increasing the so-called child money.

President Dalia Grybauskaitė in early March criticized the ruling coalition's vague plans of restructuring pension and tax systems, calling to keep the operational system. In her words, the government should not fuel people's expectations, if they cannot be translated into reality.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Baltic States seek a single regional assessment

Ministers of finance of Lithuania, Latvia and Estonia, the European Commission and NASDAQ appealed...

LMT presents three digital service innovations at Baltic Mobile Congress

LMT (Latvian Mobile Telephone) is the telecommunications market leader in Latvia and a digital service...

CERN is considering the possibility of establishing business incubation centre

Last week, CERN delegation paid a visit to Kaunas University of Technology (KTU) Santaka Valley. The...

Israeli cloud services integrator chooses Vilnius for European base

TeraSky, a leading Israeli cloud solutions integrator, has just announced the opening of its European...

The popular French fashion brand „Gémo“ enters the Baltic States: first store in Lithuania – in 2019

The popular French fashion brand „Gémo“ entered the Baltic States - the first regional store was...