At the Seimas, the idea of ​​a luxury tax: calculated how many expensive cars companies bought

Last year, legal entities operating in Lithuania registered 773 new light vehicles worth more than 50 thousand. EUR amount.

Last year, the companies bought more than 200 BMW cars, 100 Mercedes cars, 70 Porsche cars, 15 Bentley cars, 2 Ferrari cars and 2 other Lamborghini cars, according to the Seimas Budget and Finance Committee.

The most expensive car: 565 thousand. The Dethleffs tourist car cost 375 thousand euros. Ferrari cost 345 thousand euros. Porsche cost a billion euros. The cheapest Bentley cost around 160,000. EUR, the most expensive – 305 thousand. euros.

More than 100 thousand. euro costs 170 cars.

It is established that the valued cars are those companies whose activities are not related to the sale or rental of cars, leasing.

“In total, legal entities per year for new luxury cars, the value of each of which exceeded 50 thousand. EUR, spent more than 67 million. M. Majauskas, Chairman of the Budget and Finance Commission of the Seimas, share.

If such amount were paid in the form of dividends to individuals, 15% would have to be paid. taxes on personal income. At that point, businesses, by contrast, can take advantage of expensive purchases and reduce taxable profits.

“It is important to emphasize that luxury in itself is not an evil or a crime. However, in the interests of justice, it is important to ensure that the purchase of luxury cars does not abuse state support and that taxes are paid properly. Furthermore, for the purposes of tax morality, it would be convenient to evaluate the need to adjust the relevant laws ”, says M. Majauskas.

It ensures that the BFK intends to apply to the Ministry of Finance, the State Tax Inspectorate, a request to carefully assess whether the luxury property is not used for private purposes.

“If suspicions are confirmed, your depreciation and maintenance costs shouldn’t reduce taxable profits.” If it turns out that the property is attributable to the employee’s income in kind, then such acquisition and maintenance costs should be taxed as employment-related income ”, explains M. Majauskas.

It is also intended to request a careful assessment of whether legal entities were not included in the lists of companies affected by the COVID-19 pandemic prior to the purchase of the luxury cars in question and whether they received taxpayer support administered by the STI .

“In such cases, carefully assess whether they should not be removed from the list of victims and the support received returned to the state budget,” suggests M. Majauskas.

The authorities are also asked to carefully assess the need to adjust the provisions of the Corporation Tax Law to limit the scope of the inclusion of the purchase and operating costs of luxury cars.

Finally, after careful evaluation, taking into account the experience of the EU countries, the Ministry of Finance and the STI should assess the need to introduce a luxury car tax in Lithuania, calculated on the basis of its value. and power, the committee intends to propose.

M. Majauskas stressed that in this step the BFK seeks to raise the issue of tax morale: “Today we see such a fact and it is worrying.”