Skvernelis says that pressure came from international organizations and the central Bank of Lithuania.
“We did receive considerable pressure both from the International Monetary Fund or the OECD and from the Bank of Lithuania to introduce a blanket property tax,” he told reporters on Tuesday.
The prime minister described the government’s proposal as a compromise between the existing property taxation system and a blanket tax.
The central bank proposed to broaden the real estate tax base to cover all properties, setting a low taxation threshold so that a lower-valued property is taxed at a lower rate.
The IMF has repeatedly recommended that Lithuania tax not only real estate, but also cars. The Organization for Economic Cooperation and Development has proposed that Lithuania should increase the property tax for households.
The government proposes to tax second, third and further residential properties owned by one individual at a rate of 0.3 percent.
Primary homes will continue to be taxed if their value exceed 220,000 euros at a rate depending on the value: 0.5 percent for a property valued at between 220,000 and 300,000 euros, 1 percent for a property valued at between 300,000 and 500,000 euros, and 2 percent for a property valued more than 500,000 euros.