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The rent will be reduced.
Members of the city’s Economy and Finance Committee discussed various draft decisions presented by the municipal administration to provide assistance to entrepreneurs affected by COVID-19.
Politicians supported the proposal to have 30 percent. The property tax is reduced for those entrepreneurs who rent this property from the city municipality.
Such an advantage is said to be given to the city’s entrepreneurs and will allow them to benefit from the support provided by the state.
Edvardas Simokaitis, head of the Klaipeda Municipality Property Department, explained that the state creates conditions for entrepreneurs to use the rental support, but only if the tenants have received 30 percent. landlord discount.
In this case, entrepreneurs who rent real estate can receive state compensation of up to 50 percent. Rent already reduced.
“If the landlord reduces the rent by 30%, then the tenant can apply to the state for a 50% reduction in the remaining 70%, leaving the tenant with 20% of the amount they will have to pay in total rent,” E. Simokaitis explained
It is estimated that if said proposal is approved, the city would lose 3.5 thousand. euros
The rent will be reduced for those companies that were banned during the quarantine.
Those whose activities are not on the prohibited list will not be entitled to the benefit, but may request a six-month rate deferral.
Two similar suggestions
The issue of exemption from the local tariff for commerce and service provision in public places in the city, which sparked many political passions, was also discussed at the meeting.
Klaipeda has already written that Saulius Budinas, a member of the municipal council, has submitted a similar proposal. The main difference between the draft decision presented by the politician and the municipal administration is the period of the proposed benefit.
The municipal administration proposes to exempt employers from the fee as of March 16, i. and. from the beginning of the quarantine. The draft decision presented by the politician did not specify a start date, so the benefit would have taken effect from the approval of said proposal.
In both cases, employers are expected to be exempt from the fee by the end of this year.
Relief: for a wider circle
According to Kristina Petraitienė, head of the finance department of the Klaipėda municipality, if the politicians approve this proposal, 33 thousand LTL will not be collected in the municipal budget. euro income
Outdoor cafes operating in the city and on the beaches are already exempt from the fee, the list of beneficiaries of the proposed draft decision would increase: the benefit will be available to various providers of summer entertainment, ice cream or other merchants, etc. .
The politicians unanimously supported the proposal.
It is true that at the end of the discussion on this topic, S. Budin declared that he withdrew his proposal, because it no longer makes sense to discuss it.
The politician also emphasized that helping the city could have helped the city in the past. According to him, how to help, it was translated to consider already in March and not wait until May.
Help – very little?
The members of the Finance and Economy Committee also decided on the reduction of the tax on the lease of real estate, land and state land for entrepreneurs affected by COVID-19.
“At the expense of the municipal budget, it is proposed to exempt taxpayers included in the list of taxpayers affected by COVID-19 compiled by the State Tax Inspectorate from paying 10% of rents on real estate, land and state land by 2020” , presented the Finance proposal. Head of the Department K. Petraitienė.
This list is said to contain nearly 3,000. legal persons registered in the port city. It is estimated that with the approval of said tax relief, around 314 thousand LTL will not be collected in the Klaipeda budget. euros
According to K. Petraitienė, the proposal has already been presented to business representatives who had no comment on such plans.
Admittedly, relief will be disabled for real estate, which has been recognized as abandoned or neglected this year, and for land that has been included in the list of unused land for other purposes in Klaipeda this year.
However, such a proposal has raised questions for some politicians.
Committee member S.Budin wondered why it was decided to give 10 percent. year-round instead of following the example of the capital, where employers are exempt from tax during the quarantine period.
“This provides much more support for business than that offered by the Klaipeda city municipal administration,” said the politician. He admitted that he believed that perhaps the businessmen had no choice but to be introduced to the fact of the road that the city was going to take.
However, K. Petraitienė claimed that several variants had been calculated, and in the end it was decided to offer exactly one variant of support as it was presented to the politicians for their consideration.
Some committee members noted that it is important to properly assess the city’s financial capacity when planning ways to help businesses.
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