Currently, income of athletes and coaches is imposed a 15-percent incometax.
Draft laws proposed by the ruling Coalition of Changes envisage that from2009 athletes' income will be imposed additional 6-percent health insurancetax and 1-percent social security tax.
Additionally, sports clubs will have to pay 7-percent social security taxand 3-percent health insurance tax of the pre-tax contract sum.
The new legislation no longer lists coaches as athletes. Starting nextyear, their income will be taxed with 15-percent income tax, 6-percenthealth insurance tax and 3-percent social security tax.
Furthermore, sports clubs will have to pay 27.7 percent in socialsecurity tax and 3 percent in health insurance tax of the pre-tax contractsum.
"Such situation may lead to a catastrophe because the new taxes areintroduced in the middle of the basketball season, while all contracts withathletes and coaches had been concluded in the summer or in the fall.Therefore, the increased tax load will be unbearable for the budgets ofsports clubs," reads the communique signed by Lithuania's major basketballclubs including Zalgiris Kaunas, Lietuvos Rytas Vilnius, Siauliai, NevezisKedainiai, Neptunas Klaipeda, Sakalai Vilnius and others.