Kaunas to introduce ‘pillow tax’

The move was on Tuesday approved by the city council. The local coffers are estimated to receive around EUR 200,000 in 2016 from the new tax, the Kaunas authorities said.

“The money received from the so-called ‘pillow tax’ will be spent on improving tourism infrastructure in the City of Kaunas, promoting the city abroad and increasing its competitiveness. This way we will be able to attract more tourists,” Kaunas Vice-Mayor Simonas Kairys said.

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The tax may later increase to EUR 1, the authorities said.

Similar fees are now in place in Lithuania’s resort towns of Birštonas, Druskininkai and Palanga, and Vilnius is also considering to introduce the levy.

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