The parliament on Tuesday denounced Lithuania’s treaty with Belarus on avoiding double taxation of income and preventing fiscal irregularities. It is the latest step in Vilnius’ drive to sever formal relations with the Belarusian government.
The agreement, in effect since 1997, was revoked in a vote of 111 to 4, with 4 abstentions.
MP Arvydas Anušauskas of the conservative Homeland Union party said Belarus is seen as Russia’s satellite supporting the war in Ukraine.
“We can’t help the Belarusian regime by providing tax incentives,” he told the parliament.
MP Valius Ąžuolas of the Lithuanian Farmers and Greens Union expressed regret that Lithuania is terminating such agreements rather than suspending them, as other countries do.
Meanwhile, conservative MP and former prime minister Ingrida Šimonytė said there were no such countries.
With the treaty annulled, Lithuanian and Belarusian residents will be taxed according to national rates and rules. For example, dividends and other payouts to Belarusian citizens holding permanent residence permits in Lithuania will increase to 20 percent, compared to the current personal or corporate income tax rates ranging from 0 to 10 percent.
Moreover, the move will discourage cross-border business ties.
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