New finance minister: Taxing income on disposable dependents would make the tax system fairer



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“We see that the situation in Lithuania with the level of poverty and income inequality is really worrying, and it is no longer enough that these (applicable – ELTA) measures try to manage it profitably. It seems to me that if we could tax the family income, regardless of the activity from which it was derived, the tax system would probably be fairer, ”he told Knowledge Radio on Thursday.

G. Skaistė also claimed that such a tax payment model would help achieve certain social goals.

“If we could take into account the number of dependents, then I think the system would become one that helps us achieve certain social goals: reduction of income inequality, reduction of poverty. That, after all, for families with more dependents, (…) the tax burden would be less, ”said G. Skaistė.

However, the appointed minister added that the main problem with such a tax payment model is possible abuse.

“The problem is not to foresee certain rates or exemptions, but to anticipate all the situations of how the system could be abused and how it could be applied. It seems to me that the main problem here is,” he assured.

The government program states that it is planned to pass to the family (household) as a long-term income contributor. Such a principle would allow a more specific use of income tax for social policy purposes, ensuring that income tax takes into account not only the amount of income but also the dependents available.

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