2019.09.04 10:25

Lithuanian president to propose tax revamp

Lithuanian President Gitanas Nausėda says he plans to propose to the country's parliament to introduce a flat rate on all types of income, and to apply differentiated rates depending on the amount.

“There are many proposals, and they include economic issues, like, for example, taxing resident's income based not on its origin, but on the amount, since work-related income and capital income are of similar nature, therefore, there shouldn’t be special tax rates for one or the other,” Nausėda told the DELFI Dėmesio Centre programme on Tuesday.

“One cannot say today that capital is more expensive than labour, since there's a widespread shortage of workforce. Therefore, labour taxation should be fair,” he said.

The president said he would propose repealing some tax exemptions and halting the initiative of raising the size of non-taxable income to use the extra funds for pension increases.

The Seimas of Lithuania will start its autumn session on September 10.