Lithuania's three-year tax system reform on Tuesday passed the second reading in the Seimas.
© DELFI / Domantas Pipas

The reform provides for consolidating labor-related taxes on their employee side, introducing two personal income tax rates, of 20 percent and 27 percent, and increasing the tax-free income threshold and broadening its application.

Sixty-eight lawmakers voted in favor of the respective amendments to the Law on Personal Income Tax, 19 were against and 23 abstained. A final vote on the amendments is planned for Thursday.

Stasys Jakeliūnas, head of the Seimas Committee on Budget and Finance, also presented a separate opinion by several lawmakers, including himself, that the raising and broadening of the tax-free income threshold in the second and third year of the reform threatens the country's financial stability.

"We don't yet have clear projections of how our economy and budget will look in 2020 and 2021. In the fall, perhaps we'll be able to make decisions (on the tax-free threshold) based on these indicators," Jakeliūnas said.

"I'm not opposed to lowering the tax burden, but on one hand, we must do so responsibly, and, on the other hand, we must have sources to compensate (for the tax revenue loss). These (sources) are insufficient and will be discussed, too."

Algirdas Sysas of the opposition Social Democratic group in the Seimas said that the government failed to deliver on its promises to reduce social exclusion.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Prosecutors: Ambassador to Russia might have committed official misconduct

Lithuanian prosecutors have changed the status of the country's Ambassador to Russia Remigijus...

Police launches probe into journalist Cerniauskas' actions

Lithuania's police has launched a pre-trial investigation into the actions of journalist Sarunas...

Foreign Minister: due to Russia's violations of international law a crisis point in reached

On 16-17 May, the Minister of Foreign Affairs of Lithuania Linas Linkevičius attended a session...

Opposition say won't dance to Karbauskis' tune

Statements by Ramunas Karbauskis , leader of the Lithuanian Farmers and Greens Union (LFGU), about...

Grybauskaite to attend Ukrainian President’s inauguration

President Dalia Grybauskaitė is leaving for Kyiv on Monday, May 20, to attend the inauguration of...