The Lithuanian parliament's Committee on Social Affairs and Labor on Wednesday approved of a ceiling on employees' contributions to the state social insurance fund Sodra, back-pedaling on a decision to oppose the measure it took last week.
© DELFI / Domantas Pipas

Thus, a compromise has been found between the government's proposal to introduce a social security tax ceiling and calls for raising the personal income tax rate on income above that ceiling.

The committee's vote came after the parliament's Committee on Budget and Finance earlier in the day backed a proposal from some lawmakers to introduce two personal income tax rates, of 20 percent and 27 percent, without setting a ceiling on Sodra contributions.

"The committees complemented each other and there is no chaos", Tomas Tomilinas, a member of the Committee on Social Affairs and Labor, told BNS.

Finance Minister Vilius Šapoka said earlier in the day that the Committee on Budget and Finance had made a mistake that would have to be corrected by the full Seimas.

The minister said that if the parliament approved of the budget committee’s decision, that would "cause chaos".

A 27 percent tax rate would apply to annual income over 120 average salaries in 2019, 84 salaries in 2020 and 60 salaries in 2021.

The government expects the Seimas to make decisions on the proposed tax reform by the end of the current spring session so that the changes can come into force in early 2019.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Įvertink šį straipnį
Norėdami tobulėti, suteikiame jums galimybę įvertinti skaitomą DELFI turinį.
  • 1
  • 2
  • 3
  • 4
  • 5
(0 žmonių įvertino)
0
Leave a comment
or for anonymous commenting click here
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...