- Proposed VAT Increase: Prime Minister Gintautas Paluckas announced a proposal from the Ministry of Finance to raise the reduced VAT rate from 9% to 12%. This rate currently applies to essential services like district heating, public transport, and certain publications, while discussions are ongoing regarding the implications for non-essential goods and services.
- Corporate Tax Considerations: While the government is considering the VAT increase, there is an effort to avoid an additional corporate tax hike. Current discussions among ruling parties indicate skepticism about raising corporate tax further, especially following a recent increase to 16%.
- Broader Tax Reforms: The government is exploring various tax reforms, including potential changes to personal income tax for high earners, expanding the tax base on real estate, and introducing new taxes, such as on sweet drinks, as they seek alternative revenue sources to offset any increases in corporate tax.
Source vz.lt
