Finance Minister Rimantas Šadžius says that the tax changes approved by the government would slow Lithuania’s economic growth by 0.2 points at most.
“We assessed the economic impact of the proposed tax measures, and we did it honestly. There’s no such thing as a tax hike that doesn’t affect the economy – there just isn’t. But the impact will be minor. We estimate that, in the worst case, the impact on GDP growth could be minus 0.2 points,” Šadžius told the radio Žinių Radijas on thursday.
The minister added that the changes would not turn Lithuania into “an economic wasteland”, as argued by some business community representatives.
“These decisions are measured, carefully considered from every angle. I believe the package is solid, and I very much hope our parliament will approve it by a democratic majority,” he said.
In March, the Finance Ministry forecast that Lithuania’s GDP growth would be 2.9 percent in 2026 and 2027, and 2.8 percent in 2028.
On Wednesday, the government approved a package of tax changes proposed by the Finance Ministry and will now forward the legislation to the parliament for debate.
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