Taxation overhaul, other structural reforms to be implemented in Lithuania: governmental proposals

Source: Xinhua    2018-04-16 23:24:06

VILNIUS, April 16 (Xinhua) -- The Lithuanian government has started to implement structural reforms which were long overdue but were prevented by the lack of political will earlier, the country's prime minister said on Monday while presenting a package of planned structural reforms.

Overhaul of taxation and pension systems, combatting the shadow economy, changes in the areas of education, innovations and healthcare were introduced by the Lithuanian government in a set of long-awaited reforms.

"After implementing these essential changes we will improve the whole environment of living, working and raising children in Lithuania," Lithuanian Prime Minister Saulius Skvernelis was quoted as saying in a statement released by his office.

Among other proposals, the government intends to reduce labor taxation, gradually introduce progressive taxation for the highest earners, expand taxation of residential real estate with only the main residential property of a person to be exempted from the tax.

The government expects that the average monthly net wage will grow by 50 euros as a result of the tax reform.

"The average wage should increase by around 50 euros next year, this would affect around 1 million workers," Skvernelis was quoted as saying at a press conference on Monday by local media.

The main goal of the set of reforms is "to improve the situation of the middle class", he added.

As regards education and healthcare, the government plans to increase teachers' and medical workers' wages by 14 percent and 20 percent respectively. Systems of secondary education and primary health services will be refurbished, the government said.

According to the governmental officials, the cost of the tax reform will amount to 173 million euros in 2019.

The authorities also plan to retrieve 200 million euros from the underground economy in 2019. One of measures aimed at this goal is so called six-month taxation amnesty allowing people to pay taxes without fines or interest.

The proposed changes will become a subject for public debates in the upcoming few weeks, the head of government noted.

"What we are currently proposing, are not decisions yet, it is the government's vision how to solve old problems," Skvernelis said.

Nevertheless, the government expects the reforms to be implemented in 2019.

The reforms package is yet to be approved by the country's parliament. (1 euro = 1.24 U.S. dollars)

Editor: Mu Xuequan
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Taxation overhaul, other structural reforms to be implemented in Lithuania: governmental proposals

Source: Xinhua 2018-04-16 23:24:06

VILNIUS, April 16 (Xinhua) -- The Lithuanian government has started to implement structural reforms which were long overdue but were prevented by the lack of political will earlier, the country's prime minister said on Monday while presenting a package of planned structural reforms.

Overhaul of taxation and pension systems, combatting the shadow economy, changes in the areas of education, innovations and healthcare were introduced by the Lithuanian government in a set of long-awaited reforms.

"After implementing these essential changes we will improve the whole environment of living, working and raising children in Lithuania," Lithuanian Prime Minister Saulius Skvernelis was quoted as saying in a statement released by his office.

Among other proposals, the government intends to reduce labor taxation, gradually introduce progressive taxation for the highest earners, expand taxation of residential real estate with only the main residential property of a person to be exempted from the tax.

The government expects that the average monthly net wage will grow by 50 euros as a result of the tax reform.

"The average wage should increase by around 50 euros next year, this would affect around 1 million workers," Skvernelis was quoted as saying at a press conference on Monday by local media.

The main goal of the set of reforms is "to improve the situation of the middle class", he added.

As regards education and healthcare, the government plans to increase teachers' and medical workers' wages by 14 percent and 20 percent respectively. Systems of secondary education and primary health services will be refurbished, the government said.

According to the governmental officials, the cost of the tax reform will amount to 173 million euros in 2019.

The authorities also plan to retrieve 200 million euros from the underground economy in 2019. One of measures aimed at this goal is so called six-month taxation amnesty allowing people to pay taxes without fines or interest.

The proposed changes will become a subject for public debates in the upcoming few weeks, the head of government noted.

"What we are currently proposing, are not decisions yet, it is the government's vision how to solve old problems," Skvernelis said.

Nevertheless, the government expects the reforms to be implemented in 2019.

The reforms package is yet to be approved by the country's parliament. (1 euro = 1.24 U.S. dollars)

[Editor: huaxia]
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