The European Social Policy Network (ESPN) that consults the European Commission has welcomed recent initiatives which aim to strengthen social inclusion in Lithuania.
According to Emerging Europe, the Lithuanian ruling coalition has proposed to increase the marginal personal income tax rate and to lower the pace of tax allowance increases, which would result in 70 million euros additional tax revenue in 2020.
According to ESPN, the amendment will improve social justice by distributing tax liabilities more proportionally among average and high earners. Moreover, it would enhance funding opportunities for the basic part of pensions and child allowances.
Lithuania is therefore addressing very important issues such as income inequality, redistribution and public sector financing. The level of income inequality in the country is one of the highest in the EU, at 37 per cent.
Read more: Almost a quarter of Lithuanians in relative poverty
The ESPN consists of independent local experts, who are coordinated by a central team of international experts. They support European Commission in monitoring progress towards the EU social protection and social inclusion objectives.