Lithuania's finance minister says there should not be any major changes in taxation after October's general elections, but adds that state finances should work towards ensuring sustainable economic growth.

To read this article, try a €5.99 monthly subscription by clicking here.
Rasa Budbergytė
© DELFI / Kiril Čachovskij

Minister Rasa Budbergytė, who took over as finance minister in June, met with Robertas Dargis, the president of the Lithuanian Confederation of Industrialists, the country's largest big business association. The Confederation of Industrialists is planning a series of meetings with politicians to see which party's platform is in line with the interests of its members.

Budbergytė, a social democrat, caused some ripples in the business community in June when, right after assuming the office of finance minister, said that Lithuania would eventually have to reform its tax system and introduce levies on real estate and vehicles. She quickly qualified her statements, assuring that the reform was a task for a future government.

After meeting with the finance minister on Monday, Dargis said that while there were differences of opinion, they agreed on essential things.

"The main theme of today's meeting - which made a good impression on me - was that we cannot look at state finances from the point of view of accounting only. The most important statement uttered today was that state finance and its management must create conditions for sustainable economic growth," Dargis said.

Robertas Dargis
Robertas Dargis
© DELFI / Šarūnas Mažeika

"We all agree that there is no need to increase taxes in Lithuania, which we are not planning to do. The state has enough money, the main issue is using them for funding priority areas," Budbergytė said.

The priorities are, according to the minister, reducing income gap, properly funding national defence and carrying out structural reforms that would ensure economic growth.

Dargis says he has discussed with the minister the possibility of export insurance and the need to ease access for businesses to finance. Lithuanian businesses would like to scrap tax on reinvested profits.

While Budbergytė expressed reservations about doing away with tax on reinvested profits, saying it warranted more discussion, she agreed that export insurance would help Lithuanian businesses. She also agreed that businesses could use other sources of finance than banks.

"In our effort to help the economy grow and be competitive, it is important to enable new alternatives and new sources so that small and medium-sized businesses have access to finance not just via commercial banks," Minister Budbergytė said.

Dargis would not reveal whether the Confederation of Industrialists found the rest of the Social Democratic platform acceptable. He says he plans to meet with all the parties before October's elections so that Lithuanian businesses had a better idea of what to expect from the next government.

Įvertink šį straipnį
Norėdami tobulėti, suteikiame jums galimybę įvertinti skaitomą DELFI turinį.
  • 1
  • 2
  • 3
  • 4
  • 5
(0 žmonių įvertino)
0
Leave a comment
Commenting is allowed for registered users only!
By posting, you agree to terms
Read comments Read comments

Lithuanians borrow less, but larger amounts and more responsibly

The Lithuanian non-bank financial sector is showing maturity: the consumer credit market survey of...

Crisis looks bigger through the eyes of fear, yet statistically insignificant

Last year, the rate of enterprise failure decreased by fivefold and credit ratings of companies...

Socially responsible business: growth opportunity or a rehabilitation centre for the disabled?

The Lithuanian Parliament (the Seimas) intends to oblige companies employing the disable d to...

A new co-working space UMA GO9 in downtown Vilnius will be filled with Nordic motifs of nature

On the top floor of a premium shopping center GO9 more than 2,000 square meters co-working space UMA...

FinTech companies showed avid interest in the LBChain project

The LBChain project has garnered significant attention among European FinTech companies: with 21...