Seimas committee approves of social security tax ceiling

Thus, a compromise has been found between the government’s proposal to introduce a social security tax ceiling and calls for raising the personal income tax rate on income above that ceiling.

The committee’s vote came after the parliament’s Committee on Budget and Finance earlier in the day backed a proposal from some lawmakers to introduce two personal income tax rates, of 20 percent and 27 percent, without setting a ceiling on Sodra contributions.

“The committees complemented each other and there is no chaos”, Tomas Tomilinas, a member of the Committee on Social Affairs and Labor, told BNS.

Finance Minister Vilius Šapoka said earlier in the day that the Committee on Budget and Finance had made a mistake that would have to be corrected by the full Seimas.

Related Post

The minister said that if the parliament approved of the budget committee’s decision, that would “cause chaos”.

A 27 percent tax rate would apply to annual income over 120 average salaries in 2019, 84 salaries in 2020 and 60 salaries in 2021.

The government expects the Seimas to make decisions on the proposed tax reform by the end of the current spring session so that the changes can come into force in early 2019.

Share

Recent Posts

  • Foreign affairs

After Nausėda meeting with Budrys, the opposition retorts to the candidate’s “cooling off “

Kęstutis Budrys, the President's Senior Adviser, who has been nominated for the post of Minister…

4 weeks ago
  • Tribune

Rediscover Bulgaria’s Ancient Heritage: Plovdiv’s Restored Eastern Gate and Nebet Tepe

In the heart of Bulgaria, the city of Plovdiv reveals a rich tapestry of ancient…

4 weeks ago
  • Foreign affairs

“No need to mince words”: an assessment of what Trump’s victory means for Lithuania

"We can shout very loudly, but it won't change the position of the American people,"…

1 month ago
  • Latest

Lies, disrespect and mockery: experts assess Blinkevičiūtė’s “gift” to voters without scruples

From mocking messages flooding social networks to harsh criticism from political experts, the decision of…

2 months ago
  • Foreign affairs

Another year in the sovereign history of Kazakhstan

Republic Day has been celebrated in Kazakhstan as the main national date since 2022, giving…

2 months ago
  • Defence

In the assessment of NATO’s readiness for war with Russia, there is also a warning about the Baltic states: what is the Kremlin’s wild card?

According to Lrytas.lt, the North Atlantic Treaty Organisation (NATO) faces a new geopolitical reality with…

2 months ago