PM expects tax reform laws to be passed by July

“We want to put the legal base in order by July 1,” the prime minister told reporters on Wednesday after a meeting between leaders of the ruling Lithuanian Farmers and Greens Union‘s political group in the Seimas and chairpersons of the parliament’s committees.

According to Skvernelis, the reform will include an overhaul of second-pillar pension systems and amendments aimed at reducing the tax burden “both on labor and the overall (tax burden), because we have both to be competitive and to increase people’s income”.

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He said that the government would not table any proposals regarding tax increases.

When asked if there are plans to consolidate social insurance taxes paid by employers and employees, Skvernelis said that this was a subject of discussion.

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“I’m not saying that there will be consolidation, but there are such discussions,” he said.

According to the prime minister, whether progressive taxes will be introduced will depend on the tax consolidation.

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“If there is consolidation of the employee and employer (taxes), some tariffs may emerge, but it’s too early to speak about that,” he said.

The government last year tabled certain tax amendments, which were adopted by the parliament in tandem with the 2018 budget.

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