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2013.06.11 14:25

Tax burden on labour income to be reduced in Lithuania

DELFI|The Lithuania Tribune2013.06.11 14:25

On Monday after the Cabinet sitting Prime Minister Algirdas Butkevičius confirmed that the Government approved of the proposals of Ministry of Finance on changes in personal income tax (GPM), excises and profit tax, the Baltic Course reported with reference to the news agency ELTA. 

On Monday after the Cabinet sitting Prime Minister Algirdas Butkevičius confirmed that the Government approved of the proposals of Ministry of Finance on changes in personal income tax (GPM), excises and profit tax, the Baltic Course reported with reference to the news agency ELTA.

The Prime Minister said that the first change in the system is progressive increase of non-taxable income (NPD).

“I can repeat that at first we are reducing the tax burden on labour income. For those who earn up to LTL 3,200 (EUR 926), non-taxable income will be increased up to LTL 570 (EUR 165), and as of 2015 we plan to increase up to LTL 700 (EUR 202),” said the PM.

Butkevičius says that faulty personal income tax (GPM) will be improved.

“Afterwards we are going to eliminate tax loopholes in GPM, by imposing larger tax on income received from capital and we have to admit that there were large gaps left when both legal entities and individuals lent money to each other,” says the PM.

Butkevičius also points out that five year profit tax relief for investment into new technologies and innovation is intended. 

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