VILNIUS - Lithuanian taxpayers could be slapped with new taxes to offset possible budget revenue losses if politicians resolved to cut the personal income tax for all employed persons in 2006 go ahead with their plans, the business daily Verslo Zinios reported on Nov. 12.
Finance Minister Algirdas Butkevicius said that the personal income tax could be lowered by around 3 percentage points, from 33 percent to 30 percent. He added, however, that no tax proposals would be brought forward to Parliament until January at the earliest, after a new government is formed.
In the meantime, the ministry is reportedly calculating how much revenue could be generated if the government levied taxes on things such as real estate and automotive vehicles, and at the same time increased the minimum monthly salary from 500 litas (145 euros) to 550 litas, the article stated.
Butkevicius said that the government might introduce a tax on property worth more than 350,000 litas - 400,000 litas, while tax credits would probably be available to pensioners and the disabled. In addition, the government is being pressed by the European Union to introduce a tax on motor vehicles.
"We will see how much additional revenue can be collected after we have made our calculations. We will then start discussing by how much we can cut the personal income tax rate," Butkevicius said.
