© DELFI / Šarūnas Mažeika

Lithuania’s parliament has approved liberal MP Eligijus Masiulis’ proposal to increase tax-free income thresholds for workers from from €200 a month to the level of the minimum monthly salary which is currently €350 a month.

The MP said that the adoption of these income tax law amendments would reduce the tax burden on lower income earners.

"Today, the major problem in Lithuanian is low wages, so with this decision we are trying to deal with minimum wage increase. The greatest relevance is for the lowest-income earners, because they will feel the biggest increase, while those who earn higher incomes will not feel the increase," said Masiulis.

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