LBL cancels games in tax protest

VILNIUS - The Lithuanian Basketball League (LBL) has announced that it will suspend all national championship games scheduled to take place on Dec. 20 and 21 to protest the government's decision to raise taxes.

"It seems that sports in Lithuania will not be ruined by the global economic crisis but by local politicians and bureaucrats. Sports will be in catastrophic situation due to the projected new draconic taxes. Therefore, the country's best basketball clubs decided to suspend the LBL championships and not to hold any of the scheduled matches this weekend," the LBL said in a press release

Currently, income of athletes and coaches is imposed a 15-percent income tax.

Draft laws proposed by the ruling Coalition of Changes envisage that from 2009 athletes' income will be imposed additional 6-percent health insurance tax and 1-percent social security tax.

Additionally, sports clubs will have to pay 7-percent social security tax and 3-percent health insurance tax of the pre-tax contract sum.

The new legislation no longer lists coaches as athletes. Starting next year, their income will be taxed with 15-percent income tax, 6-percent health insurance tax and 3-percent social security tax.

Furthermore, sports clubs will have to pay 27.7 percent in social security tax and 3 percent in health insurance tax of the pre-tax contract sum.

"Such situation may lead to a catastrophe because the new taxes are introduced in the middle of the basketball season, while all contracts with athletes and coaches had been concluded in the summer or in the fall. Therefore, the increased tax load will be unbearable for the budgets of sports clubs," reads the communique signed by Lithuania's major basketball clubs including Zalgiris Kaunas, Lietuvos Rytas Vilnius, Siauliai, Nevezis Kedainiai, Neptunas Klaipeda, Sakalai Vilnius and others.