The value added tax will remain 21 percent in Lithuania after the country's parliament on Thursday rejected the liberals' initiative to cut it to 18 percent from 2020, a level that was before the 2009 crisis.
© DELFI / Orestas Gurevičius

22 lawmakers voted in favor of the parliament starting deliberation of the proposed amendments to the Law on Value Added Tax, 18 were against and 33 abstained.

Edmundas Pupinis, representing the opposition conservative Homeland Union – Lithuanian Christian Democrats, believes cutting the VAT and subsequent lower budget revenue would stop the growth of wages for public sector workers, especially for teachers.

Jurgis Razma, a member of the parliamentary Committee on Economics, estimated that the state budget would lose around 0.5 billion euros in revenue if the VAT was cut to 18 percent.

The last attempt to reduce the VAT to 18 percent was made in the Lithuanian parliament in November, 2017.

Economists and legal experts also discussed the issue in the middle of 2014. President Dalia Grybauskaite then criticized the plan, stating that the solution of social problems, not cutting individual taxes, should be a priority.

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

Father: Paleckis banned from seeing family members

Algirdas Paleckis , former leader of the Socialist People's Front who is suspected of spying for...

General Rupsys nominated for chief of defense

Lithuania's Minister of National Defense Raimundas Karoblis on Monday proposed Major General...

President goes to Poland for first official visit

On July 16, President Gitanas Nausėda and First Lady Diana Nausėdienė will travel to Poland for...

France to send 300 troops to Lithuania next year

France will next year send around 300 troops to NATO 's multinational battalion stationed in...

Lithuania mulls US request to send troops to Syria

Lithuania is considering the United States' request to send troops to Syria to replace the American...