Lithuania to consider new taxes only after reviewing existing measures

Lithuania's Minister of Finance, Tadas Valys, outlined a cautious approach to introducing new taxes, emphasizing that any consideration of additional levies would only occur after a thorough review of existing policies and their outcomes. "First of all, what we are doing now is reviewing what has been done. We still have to assess whether certain measures have been successful or not," Valys stated in a "Verslo žinios" podcast.

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First of all, what we are doing now is reviewing what has been done. We still have to assess whether certain measures have been successful or not.

Valys highlighted that the current government has made "bold, willful decisions" that faced public dissatisfaction and doubt. He stressed that new taxes would only be contemplated once the government is convinced that objectives have been met or that specific corrections are essential. "Only when we are convinced that we have truly achieved certain goals or that certain corrections are necessary – only then would we consider introducing additional taxes," he explained.

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We know that (...) during the governing period of our ruling majority, bold, willful decisions were made, which caused great dissatisfaction, doubts as to whether they would succeed.

The ministry is also examining tax exceptions that are proving too costly to administer or whose application raises questions. "Certain exceptions, which also raise doubts – in certain cases, the collection (of taxes – ELTA) is too expensive or the administration is simply disproportionately high and the application of some taxes or even their benefits raises doubts," Valys added. He also mentioned the possibility of revising and potentially lowering existing tax rates, following discussions with business communities and social partners.

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Only when we are convinced that we have truly achieved certain goals or that certain corrections are necessary – only then would we consider introducing additional taxes.

Despite these reviews, Valys reiterated the core principle: "The tax system must be as stable and as predictable as possible." Prime Minister Mindaugas Sinkevičius acknowledged that unforeseen geopolitical shifts could potentially influence future tax policies, but affirmed that the government currently has no immediate plans to change taxes. A significant tax reform, enacted last year and effective from this year, already introduced changes to income and property taxes, increased corporate tax, and added new levies like a "sugar tax" and taxes on supplementary health insurance.

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Certain exceptions, which also raise doubts – in certain cases, the collection (of taxes – ELTA) is too expensive or the administration is simply disproportionately high and the application of some taxes or even their benefits raises doubts.