Lithuanian president plans to initiate tax changes for businesses affected by China

VILNIUS – Lithuanian President Gitanas Nauseda said on Wednesday that he is ready to initiate changes to the corporate income tax and other support for businesses affected by China's actions, and expects political parties to sign a national agreement on strategic foreign policy directions.

Nauseda spoke after hosting a discussion on the Lithuanian economy's resilience in the face of China's unofficial sanctions.

The meeting at the Presidential Palace brought together Cabinet members responsible for economic diplomacy and economic and financial policies, MPs and representatives of parliamentary parties, the central Bank of Lithuania and businesses.

"We talked about tax policy changes that would help businesses in the current situation: possible amendments to the corporate tax system," Nauseda told reporters, adding that his office "is ready to initiate such measures if necessary".

"We also talked about working capital replenishment possibilities and better use of the credit part of the EU's economic recovery fund to further the interests of our businesses," he said.

Lithuania today must "learn the lessons of all this story", according to the president. 

"In the future, I do hope that [...] we will be able to reach a national agreement among parties on strategic foreign policy directions," he said. 

Foreign Minister Gabrielius Landsbergis noted at the same news conference that efforts to de-escalate the situation require willingness from both sides in order to be successful. 

"There are certain directions [...] that can be discussed with our colleagues in Beijing," the minister said. "We have conveyed certain considerations through the European institutions and directly."  "But as I said during the meeting, de-escalation also depends to a large extent on those who chose to escalate the situation," he said. "Today, the most escalatory actions are coming from China, and it is up to China to decide which way to go."