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Regarding taxes, we are very hopeful that these types of proposals will be presented in this fall session. Therefore, I don’t think they can come into effect from next year for the reasons we criticized the previous government that no decisions can be made on the eve, ”Ingrida Šimonytė told the LRT Forum on Monday.
He suggested that one of the pillars of this government should be to strengthen the financial independence of the municipalities.
The head of government said that she liked the study carried out by the Organization for Economic Cooperation and Development (OECD) on how Lithuania should strengthen the capacity of municipalities to invest so that public investment brings the greatest possible benefit to the economy of the country. .
“For me personally, those suggestions seem very comprehensive, there are many thoughts that I had generated in my mind at the same time,” said I. Šimonytė.
In a study published at the end of February this year, the OECD says that to increase municipal revenues, they should pass the real estate tax on residential properties, allow themselves to set an additional rate of personal income tax, reducing national income . tax accordingly.
“It seems to me sympathetically that municipalities could not only set property taxes and all the small taxes, but perhaps also set a certain rate of personal income tax above certain agreed levels, which would go directly into municipal budgets. and they would be used to fund municipal functions. “Said the Prime Minister.
He emphasized that the discussion with the municipalities would not be about increasing funds, but about the redistribution of responsibilities and financial resources for its implementation.
“If we agree to have someone take on that responsibility, then we will probably have to agree on a financial model,” the prime minister explained.
According to the head of government, on Wednesday the first discussion will be held with the representatives of the municipality on this issue.
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