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“I play in celebrations, mainly personal, and I had to play in weddings. Mainly harmonic, but I also have sound equipment to make the voice louder,” said an opposition representative from the City Council, who works as an educator in the dormitory. from the Raimundas Sargūnas sports gym.
When asked how much he pays for a business license, the musician couldn’t remember. To avoid a conflict of public and private interests, V. Satkevičius did not participate in the debate on the amount of the tax. At the municipal council meeting, the politician withdrew from the proposal put forward by opposition colleagues to reduce the cost of business licenses to a symbolic euro.
The opposition is motivated by extending a helping hand to the people of Panevėžys who have lost income during the quarantine. However, the Municipal Administration, after calculating the amount of taxes paid by those who work with commercial licenses per year, affirms that such opposition movement is a populist proposal in the period before the Seimas elections, but not a real help for business.
To promote business
According to the Council’s opposition chief, Gema Umbrasienė, representative of the Green Party, reducing the fee for a business license to operate in Panevėžys would reduce the effect of quarantine on small businesses and would encourage citizens to start a business if their income they are lost or reduced. The opposition believes that this would boost economic recovery and increase people’s incomes.
“As a result, more people would evaluate themselves in business, internal demand would be stimulated,” G. Umbrasienė said at a remote Council meeting.
The opposition estimated that as of July 1, all of the approximately 100 activities, from logging, tombstone production, trade, shoe repair to computer games, lodging, as well as hairdressing, manicures, other beauty services, clothing, business licenses If it is taxed at 1 euro, the city budget would lose about 75 thousand euros in the remaining six months of the year. euros
The opposition believes that such a symbolic tax should remain next year. According to G. Umbrasienė, the loss of the city budget would be “two points of mayor”.
“The euro paid for the tax requires a turnover of sometimes 10 euros. A support measure would be very relevant here,” agreed Rimantas Ridikas, a representative of the Juntos faction.
Will dry in one hour
The ruling majority considered that the trade promotion measure proposed by the opposition was not as effective as its defenders.
“Listening to the opposition gives the impression that if we approve a 1 euro fee for a business license, people would win a pot of gold.” In fact, this is not the case, therefore I consider such a proposal to be a complete electoral cloud “, – Birutė Valkiūnienė, a member of the” renewable Panevėžys “faction, saw the influence of the October elections to the Seimas elections .
According to her, the introduction of a fee of 1 euro for those who work with commercial licenses would mainly distort the tax system.
“The business license tax is the equivalent of the personal income tax paid by people who work with employment contracts. No one pays a symbolic euro in personal income taxes, and, in my opinion, all employees should have the same or at least the same conditions, “said the governing body. According to B. Valkiūnienė, the fees for a commercial license approved by the municipality of Panevėžys are not high.
“If a person who has acquired a business license works full time and pays a fee of 250 euros a year, then one month costs 20 euros, and one hour of work is only 11 cents, which is the cost of a simple crumb of bread. ” Lowering the tax on the euro would not open up great opportunities or encourage development. The opposition is talking about a pot of gold, which doesn’t really exist, there is a big difference between reality and words, “calculated the council member.
Fees for a business license, such as personal income tax, go to the city budget.
“As much as is collected per year from the sale of commercial licenses, it would cost to install a footpath and bicycle path on Pievų street, which was requested by the disabled, or the same on Pramonės street. When people who work with employment contracts contribute to the common good of the city, I think it would be a mistake if people who work with commercial licenses do not also contribute, “said B. Valkiūnienė.
See the game
According to data from the State Tax Inspectorate, in 2019, 1,916 inhabitants worked in Panevėžys with commercial licenses. Of these, nearly 1,400 for commercial licenses did not pay the full price, but took advantage of the benefits. Of the 89 activities that can be carried out after obtaining a business license, the cheapest – 12 euros per year – 47 (landscaping, window cleaning, boat, bicycle rental, gift wrapping, bathroom restoration, etc.) , the most expensive – 500 euros per year ten works were appraised (trade, furniture production, vehicle repair, rental of premises).
Last year, those who worked in Panevėžys with commercial certificates paid for them and supplemented the city’s budget by 151,000. 636 euros. According to Tomás Jukna, director of the municipal administration, this tax is not the one that would relentlessly put pressure on the people of Panevėžys. The director described the reduction project prepared by the opposition as a populist proposal.
“We have a wide range of activities that are subject to different business license fees. There are many more benefits on this list: students with disabilities, people of retirement age, and a total of eleven more people in groups. We really maintain a competitive niche for commercial licenses, the way they are acquired is flexible, there are many compensations and now to say that we do it in euros and save Panevėžys is just a game ”, emphasized T. Jukna.
The director also reasoned that the state had already extended a helping hand to this category of workers. Those who have obtained business certificates before and during their quarantine will receive a refund as well as a fixed allowance of EUR 257 per month for three months and two months after the end of the quarantine.
After an emotional debate, the opposition’s proposal to tax business licenses in one euro was supported only by its own representatives, and the proposal was rejected by a majority.
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