2019.07.18 13:58

Lithuanian PM hints at new taxes on property and polluting cars

BNS 2019.07.18 13:58

Lithuanian Prime Minister Saulius Skvernelis says the government is considering broadening the property tax and introducing a levy on polluting cars.

“We'll have to make decisions related to taxes that have no direct impact on our fiscal discipline and spending, that is, property taxes (and) transport-linked environmental taxes,” he told the parliament on Thursday after President Gitanas Nausėda nominated him to continue as prime minister.

Ramūnas Karbauskis, leader of the Lithuanian Farmers and Greens Union, the biggest parliamentary party, said in early June that there were no plans to either introduce a blanket property tax or tax cars, because that would place too heavy a burden on people.

The International Monetary Fund and the European Commission have called on Lithuania for years to broaden its property tax base. The Organization for Economic Cooperation and Development (OECD) has also recommended that the country raise the tax rate for residential properties.

Last year, the government moved to tax second and additional homes owned by one individual at a rate of 0.3 percent, but the parliament did not back the proposal.

International organizations have also recommended that Lithuania introduce a tax on polluting vehicles.