Lithuanian govt projects EUR 1.5 b higher tax revenue next year

VILNIUS – The Lithuanian government expects to collect almost 1.5 billion euros more in tax revenue next year, as revenue from all major taxes is forecast to increase, with the strongest growth of almost 60 percent projected in corporate income tax revenue. 

The central government's draft budget for 2020 projects a total of 10.479 billion euros in tax revenue, up by 1.435 billion euros, or 15.9 percent, compared to 2021. Tax revenue should account for 75.6 percent of the total projected budget revenue next year, up from 72.7 percent this year.

Revenue from the value-added tax is planned at 4.907 billion euros, or 12.8 percent (556.477 million euros) higher than this year.

Excise tax revenue is forecast to increase by 4.4 percent (70.424 million euros) to 1.687 billion euros next year.

The personal income tax should bring 2.341 billion euros into the state's coffers in 2022, 15 percent (304.523 million euros) more than this year, and corporate tax revenue is expected to go up by 58 percent (457.915 million euros) to 1.247 billion euros.

Other budget revenue is forecast to edge down by 1.4 percent to 476.584 million euros, including 119.73 million euros (down by 16.1 percent) from dividends and profit contributions from state-owned enterprises.

EU and other international financial assistance is expected to amount to 2.765 billion euros in 2022, 0.4 percent less than this year.

The central government's total budget revenue is projected at 13.86 billion euros, up by 11.4 percent (1.422 billion euros) compared to this year, and expenditure is planned at 16.481 billion euros, down by 0.8 percent (133.848 million euros).

Excluding COVID-19 pandemic response allocations, next year's budget expenditure is planned to increase by 8.3 percent (1.239 billion euros), according to the Finance Ministry.  

The general government deficit is expected to narrow to 3.1 percent of GDP in 2022, from the projected 4.4 percent of GDP this year.

The Cabinet is scheduled to discuss next year's draft budgets on Wednesday. If approved by the government, the package will be submitted to the parliament.