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2019.11.13 16:28

Lithuanian cabinet backs retail, bank taxes

BNS2019.11.13 16:28

The Lithuanian Cabinet has on Wednesday backed new taxes on bank assets and retail turnover, but asked the parliament to hold consultations on their impact.

The Seimas is currently debating its ruling bloc's proposal to tax assets of banks, credit unions and other lenders worth over 300 million euros. The measure is expected to generate between 50 million and 60 million euros in additional budget revenue annually.

The expected revenue from the planned taxes, which are now debated in the Seimas, is included in next year's budget bill.

The Cabinet also recommends that the parliament should look when the taxes should come into effect, as well as their compatibility with EU law.

The Lithuanian Banks' Association says that the tax may run counter to the Constitution, and that it would make banking services more expensive.

The Farmers and Greens Union, the biggest party in the Seimas, proposes to impose a new tax on monthly retail turnover above two million euros, not including VAT, to raise an estimated 32 million euros in additional tax budget revenue per year. If approved, the new tax would be levied from January 2020.

Rūta Vainienė, the head of the Lithuanian Retailers' Association, has told BNS that the levy would affect retail prices, adding that the tax could be illegitimate.