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VAT reduction for the tourism sector
LVK, taking into account the situation of the pandemic, proposes to apply 0% to inbound tourism and accommodation services. VAT rate. In authorized institutions for personal health care institutions – SPA hotels, health centers – to introduce health services 5%. VAT rate.
“This could lead to the recovery of those sectors,” said Andrius Romanovskis, president of LVK.
Benefits should promote people’s well-being
The Confederation advocates incentives to save and invest, which would help ensure an adequate income in old age, and calls for the abolition of the benefits of fossil fuels.
“Incentives are part of public policy when the state wants to generate changes in certain areas. (…) We believe that they should be promoted where they promote savings or human well-being,” said A. Romanovskis.
LVK Vice President Marius Dubnikov stated that tax benefits should be applied for a purpose and not support polluting areas.
“Tax breaks must be seen in the context of the industrial revolution; we must not support things that pollute our environment. It is absurd in the 21st century to heat and extract heat from red diesel, poisoning the entire surrounding population. But at the same time, these benefits can go towards making them more environmentally friendly – turn roofs into solar cells, “Dubnikov said.
It is also proposed to link individual activities exclusively to professional activities.
Teleworker Compensation
LVK’s new offer is compensation payments to employees for teleworking.
“If the employer’s employees work remotely, the tax system should allow the employer not to tax those expenses through benefits, so that the employer has an interest in contributing to the well-being of the employees in a fiscal sense,” said A. Romanovskis.
The possibility of connecting business trips to personal trips is also mentioned, if the company does not suffer losses due to the extension of the trip.
“In most cases, when traveling on business, employees extend it for their own personal purposes, which is very strictly regulated. However, we believe that more flexibility is needed. If the company does not suffer as a result, it would be possible to combine the employee’s personal travel interests with the interests of business travel, “said A. Romanovskis.
Offers to avoid dividend taxes
LVK offers reinvested earnings tax free.
“This government program provides for the exemption of reinvested earnings. Today, it already costs almost 30 percent to withdraw funds from a shareholder. Meanwhile, in other countries – Latvia, Estonia, it costs 20 percent. Poland is also introducing an exemption for reinvested earnings, “Dubnikov said.
“Today, Lithuania is an island with higher taxes than we should see,” he added.
According to him, higher taxation of dividends would prevent Lithuania from becoming more attractive to investors.
“We would like to be the most competitive of the neighboring countries. This is not the case today and we should move in that direction not to touch dividend taxes so that the company can continue to operate, ”said M. Dubnikov.
Lithuania should oppose the “mobility package”
The confederation proposes a review of taxation in the transport sector and calls for opposition to the mobility package. He also sees the need to revise the increased coefficient from 1.3 to 1.65 used to calculate the minimum wage.
“Last year, the registration of new trucks in Lithuania decreased by 45 percent. This means that the company is moving out of Lithuania due to the negative tax environment. On average, EU tractor sales fell by 29%. We have one of the strongest sectors in Europe, but at the same time we have the biggest contraction, ”said M. Dubnikov.
“Today, (the business environment for carriers – ELTA) does not meet the interests of carriers or Lithuania,” he added.
Offers to waive the surcharge for private forest owners
LVK asks to waive the additional fee for private forest owners: the mandatory 5 percent. activity deductions from the state budget.
“A mistake has been made and needs to be corrected. It is due to the alleged use of infrastructure by private foresters and should therefore be subject to additional charges. No country in Europe applies such a tax. Foresters pay 26 percent . VAT, “said M. Dubnikov.
“Sector taxes should be abandoned because they distort the market, business efficiency,” he added.
It is also proposed that a special account be established for forest income in the forestry sector, with a deferral of income tax for several years.
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