Lithuanian Prime Minister Saulius Skvernelis expects laws on the continuing tax reform to be passed by the parliament by July and to take effect in early 2019.
© DELFI / Andrius Ufartas

"We want to put the legal base in order by July 1," the prime minister told reporters on Wednesday after a meeting between leaders of the ruling Lithuanian Farmers and Greens Union's political group in the Seimas and chairpersons of the parliament's committees.

According to Skvernelis, the reform will include an overhaul of second-pillar pension systems and amendments aimed at reducing the tax burden "both on labor and the overall (tax burden), because we have both to be competitive and to increase people's income".

He said that the government would not table any proposals regarding tax increases.

When asked if there are plans to consolidate social insurance taxes paid by employers and employees, Skvernelis said that this was a subject of discussion.

"I'm not saying that there will be consolidation, but there are such discussions," he said.

According to the prime minister, whether progressive taxes will be introduced will depend on the tax consolidation.

"If there is consolidation of the employee and employer (taxes), some tariffs may emerge, but it's too early to speak about that," he said.

The government last year tabled certain tax amendments, which were adopted by the parliament in tandem with the 2018 budget.

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

Vitas Vasiliauskas: the matter of income inequality will become only more acute next year

The cabinet’s tax and public sector policy is not contributing to resolving income inequality...

CityBee is set to join European car-sharing leaders with a 110 mln EUR investment in major fleet upgrade

CityBee Solutions, which operates car-sharing services in Lithuania and Poland, today announced an...

A new money transfer startup goes to market donating its income for social campaign

Due to the growing financial awareness of the people, alternative money transfer platforms are coming...

D. Grybauskaitė: the EU will owe us

Lithuanian farmers will not receive the sort of direct grants from the EU as were promised already...

Revolut turns new page with Lithuania-facilitated banking license

Today, Revolut together with the Bank of Lithuania have announced that the challenger bank received...