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G. Nausėda proposes to reduce the standard rate of personal income tax (PIT) of 20% by the end of the year. up to 15%, applying it to the income of all employees up to the level of 3 average wages (VMU) (approximately 4 thousand euros “on paper”).
The head of state also proposes to advance the planned increase in the amount of tax-free income (NPD) and introduce a NPD higher than 50 euros already this year.
Delfi has already written that such changes would increase more by more than 2.5 thousand. The income of employees who receive “hands” per month. An increase of around € 20 to € 200 could be expected for all others who earn up to this threshold.
How G. Nausėda’s proposals would affect the income of each income group, in the charts.
However, two alternative proposals have already been registered with Seimas. According to one, it is proposed to support only the increase of the NPD, but not the reduction of the GPM rate. According to another, 15 percent. would apply to income of up to 1 VMU.
62 deputies voted to accept Nausėda’s proposals for consideration on Tuesday, 5 opposed and 15 abstained.
The projects will be discussed in the Budget and Finance Committees and in Social and Labor Affairs. The Government’s opinion on them was requested. They are slated to be discussed at the Seimas session on June 16.
Constant, temporary
Before the vote, Tomás Tomilinas, a member of the Lithuanian Peasants and Greens Union faction, said he intended to support only the NPD increase.
“Don’t you think the saying that there is nothing more permanent than temporary is very accurate in this case? Do you think that by the end of 2020 we will return to 20%? GPM is the category for which it now proposes to introduce 15% temporary. GPM? ”He asked.
Simonas Krėpšta, the chief adviser to the president, who presented the projects, replied that the project had an expiration date.
“For this rate to be valid until December 31 of this year. No previous cases of increases in the VAT rate have been foreseen.
This stimulus package, although a tenth of the total planned package, still costs a considerable amount of around € 500 million. euros For a year, that price would be even higher. Those funds will be necessary for the transformation of the economy, “he said.
As you know, during the last financial crisis, the VAT rate increased from 18%. up to 21 percent. Then it was said that this was done temporarily, but 21 percent. valid until now
Gintarė Skaistė, a member of the Christian Democratic faction of the Lithuanian Homeland Union, also said he had concerns about the temporary nature of the tariff.
“There are reasonable doubts about whether we will return to 20% in 2021. tariff. Knowing the political practice that there is nothing more permanent than temporary, the probability will continue to be 15 percent. The rate is well above 20%,” he said. .
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