Adamkus vetoes capital gains tax

  • 1998-07-30
VILNIUS (BNS) – The participants of the Lithuanian equities market have welcomed President Valdas Adamkus' veto of legal amendments that would impose taxes on capital gains and dividends.
The president vetoed the amendments to the law on private individuals' income tax and returned the amendments to parliament for another consideration July 24.
The president's decision crowned the efforts of stock brokers, who had urged the head of state not to sign the new legislation into effect.
Stock brokers say that, if enacted, the amendments would threaten the development of the capital market and scare away the existing and potential investors.
Adamkus said a tax on capital gains would be a short-sighted step unfavorable to the Lithuanian economy and people in view of the country's weak capital market and growing international competition.
Aware of the government's position, the president submitted to parliament a compromised version of the capital gains tax, Adamkus' spokeswoman Violeta Gaizauskaite said.