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“As prices rise, it is necessary to protect the economically weaker groups whose incomes are fixed by political decisions. These include people supported by various welfare systems, people with disabilities who care for the sick, retirees, as well as people with unskilled jobs for a minimum wage. Their income, unlike others, does not increase as prices rise. Until now, the Government has not presented a package of proposals on how to solve these problems to the Seimas “, says G. Paluckas.
He hopes that the authorities will support the initiative of the opposition Socialist Group for a preferential 9% value added tax (VAT) for domestic consumers of electricity and gas, but, according to G. Paluckas, this is not enough.
The Social Democrat points out that the increase in electricity and gas prices is not only driven by the market price of raw materials.
“Heating, in a broad sense, is a market controlled by the state, since prices are set by the state together with the State Energy Regulatory Council (VERT). Yes, prices are affected by the price of the raw materials, but in the final price of the service this participation is only 30%. Other components are earnings, depreciation, payroll, taxes and the like. I will just remind you that last year Ignitis’s earnings tripled to 170 million. “he says. Paluck.
According to the politician, the Social Democrats are proposing 9 percent. VAT relief for electricity and gas is just one of many possible ways to reduce the burden of price increases for consumers.
“Yes, applying such a benefit would deprive the budget of revenue, but it can be more fairly compensated by taxing the very rich and all their income, regardless of the source. So far, in terms of taxes, the government has only announced one tax on pollution of cars, which will not do any good, it will only annoy the population, because it really has nothing to do with reducing pollution, it is like a property tax. Last week we proposed many possible solutions by presenting a Appeal to the Government, but so far, there is no answer ”, says a member of the faction of the Lithuanian Social Democratic Party in the Seimas.
By 2022. G. Paluckas emphasizes that the Seimas committees have not yet come to the Government to plan more socially just tax changes as announced.
“I am surprised that the government is closing its eyes and does not seem to see these problems, even though rising prices and inflation are like adjusting the pump.” For many, the question may arise: perhaps Ingrida Šimonytė’s government represents only the very rich, who will not be significantly affected by rising energy prices? But for those on the brink of energy poverty and for those who spend a large part of their income on heating and electricity, this is of the utmost importance. In my head, the Government, even if it is led by the conservatives, must represent the whole of Lithuania, not a group of people ”, is convinced G. Paluckas.
VERT representatives announced last week that heating in the country could become on average 27-30% more expensive, while in Vilnius – up to 60%.
According to the Statistics Department, prices of consumer goods and services have risen for the eighth consecutive month. According to the latest data, annual inflation is 5 percent.
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