Lithuania’s Social Democrat Prime Minister-designate Gintautas Paluckas says his government will not rush into changing taxes as it does not want to repeat the mistakes of previous governments.
“We are learning from other’s mistakes. [We want to avoid a situation] when we start thinking, and improvising, that one or another tax might be introduced, and then the bill fails to even reach the Seimas because [...] there was no discussion either among the coalition partners or with the public, the business community, and the consumers,” Paluckas said on Thursday, presenting his government’s programme to the Seimas.
In his words, 2025 will be devoted to assessing the impact of possible tax adjustments on competitiveness, people’s purchasing power, and consumption habits.
“This government is committed to increasing redistribution, but it has to be adequate and weighed, and everyone has to understand how much the state asks from them and what this money will be spent on,” Paluckas said.
Viktorija Čmilytė-Nielsen, the leader of the opposition Liberal Movement, said that Paluckas’ government intends to “increase everything”, but does not specify where the money will come from.
Meanwhile, Mindaugas Lingė of the opposition conservative Homeland Union – Lithuanian Christian Democrats said that the government’s programme envisages a very high level of spending.
The incoming government wants to cut VAT on fresh vegetables and fruit, increase the progressiveness of income taxes, and have a review of benefits. Paluckas says his cabinet also has plans to step up the increase of pensions.
Further reading
Newsletter
Every Friday morning.
