Lithuania's Q1 revenues near 5 billion euros, up 11% from last year

Lithuania's state and municipal budgets collected nearly 5 billion euros in the first quarter of 2026, marking an 11% increase compared to the same period in 2025. Total revenues for January-March reached 3.903 billion euros, fulfilling 22.5% of the annual revenue plan, which is set at 17.314 billion euros.

Tax revenues alone amounted to 3.66 billion euros, an increase of 10.3% or 340.9 million euros compared to the first quarter of 2025. This growth is attributed to a rising wage fund and lower personal income tax (GPM) refunds to individuals filing annual tax declarations. The total collected from GPM for both state and municipal budgets was 1.51 billion euros, up 12.2% year-on-year.

Value Added Tax (PVM) generated 1.88 billion euros in revenue, a 7.7% increase. Excise taxes on all goods brought in 540.3 million euros, a 13.6% rise. Notably, excise taxes on energy products contributed significantly to this increase, rising by 40.2 million euros. Excise duties on alcoholic beverages and tobacco products also saw increases of 16.4 million euros and 14 million euros, respectively. Additionally, excise taxes on sugary drinks, introduced in January 2026, yielded 6 million euros.

Corporate profit tax revenue reached 353.4 million euros, up 12% due to higher advance profit tax payments. Other non-tax revenues, excluding EU funds, totaled 239 million euros, a substantial 31.5% increase, largely due to an earlier-than-usual profit payment from the Bank of Lithuania amounting to 71.1 million euros.

The Ministry of Finance stated that the revenue collection for the first quarter aligns with economic activity observed between December 2025 and February 2026. This period reflects the tax reforms implemented in mid-2025, which introduced a progressive personal income tax system with rates of 20%, 25%, and 32%, while maintaining a 15% rate for agricultural activities up to 60 average wages.