The Seimas, the Parliament of Lithuania, has rejected the initiative to introduce progressive taxation.
© DELFI / Mindaugas Ažušilis

On Tuesday, the Seimas considered amendments to the Law on Personal Income Tax that would have established progressive taxation rates. The Seimas Committee on Budget and Finance proposed that the bill be dropped. Fifty-six MPs voted to embrace the Committee's proposal, six voted against and six abstained.

When proposing to dismiss the initiative, the Committee on Budget and Finance quoted the conclusion of the Government and the Legal Department of the Office of the Seimas.

On 20 October, MPs approved the proposal of social democratic MP Algirdas Sysas regarding amendments to the Law on Personal Income Tax that would have introduced progressive taxation, but asked for the Government's opinion.

Based on MP Sysas' proposal, yearly income below EUR 14,000 would be taxed at 15 percent. Income between EUR 14,000 and EUR 36,000 would be taxed at 25 percent. Incomes above EUR 36,000 per annum would be subject to a 40-percent tax rate.

At the moment, personal income tax is a flat rate of 15 percent, although certain deductions apply.

It is forbidden to copy the text of this publication without a written permission from ELTA.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Proposals to charge employers with specifying wages in job adverts received negatively

The amendments to the Labour Code proposed by the “Farmers”, where employers would have to...

Proposals on air quality: maximum odour concentration in air to be reduced

In order to improve air quality and reduce discomfort for those residing near industry, manufacturing...

Capella Baltica increasing investment in Klaipėda FEZ

Capella Baltica, a Spanish cosmetics and food industry supplier, has increased the amount of its...

How blockchain technology will change the world trade?

The field of research of World Trade Organisation chief analyst Emmanuelle Ganne is the application of...

Welcome to Vilnius workshops to support foreign talent relocating to Lithuania’s capital

This Tuesday Vilnius’ business development and tourism agency Go Vilnius at the Workland Business...