Lithuania‘s President Dalia Grybauskaitė has welcomed the ruling coalition‘s plans to increase non-taxable income for workers to €310 saying she believed it would help reduce poverty.
“The modest funds that we have in the current period, I think, we should concentrate and link to poverty reduction and to those who earn the least. The increase in non-taxable income and the minimum wage increase are precisely those measures that reduce poverty and bring the most benefit to those who earn the least,” she said.
However, she doubted whether the new thresholds would be implemented this year. “It depends on financial resources available. Even this solution for NPD costs €130 million, so it is not so easy to do it this year,” said Grybauskaitė.
Prime Minister Algirdas Butkevičius said that the €310 tax credit would apply for those who earn no more than €1,024. In addition, he is proposing the tax free alllowance would be increased from €120 to €200 for each child.