Veryga proposes higher taxes on harmful habits

Lithuania's new ruling coalition is considering a strategy to bolster family policies and encourage a higher birth rate by increasing taxes on unhealthy habits. The proposal, championed by Aurelijus Veryga, chairman of the Lithuanian Farmers and Greens Union (LVŽS), involves raising excise duties and additional taxes on activities the state aims to limit, such as smoking, alcohol consumption, and gambling.

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The government is definitely thinking about finances, and all of us who have brought certain measures into the program that require additional budget expenditures – we are all thinking about where to get that money from.

Veryga stated that the coalition has identified potential revenue sources to fund its program initiatives, addressing concerns raised by the opposition about financing new government measures. "The government is definitely thinking about finances, and all of us who have brought certain measures into the program that require additional budget expenditures – we are all thinking about where to get that money from," he explained in an interview with Žinių radijas.

He recalled that similar proposals were made in the previous program, focusing on additional taxation of tobacco and alcohol. The Democrats had previously suggested additional taxation on gambling. "These are things we want people to use less, consume less, and at the same time, the budget can be supplemented," Veryga added.

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We also proposed measures in the previous program related to the additional taxation of certain products – concerning tobacco and alcohol excise taxes. Democrats at the time proposed additional taxation on gambling. These are things we want people to use less, consume less, and at the same time, the budget can be supplemented.

Beyond discouraging harmful behaviors, the coalition's program also includes measures to promote investment and increase Lithuania's competitiveness. The Ministry of Economy and Innovation has contributed several proposals related to competitiveness and reinvested profits. This approach aims to create a more robust economy, which in turn can support demographic goals. The government has declared 2027-2028 as the "Years of the Family" to tackle the demographic crisis, with eight ministries proposing various family policy initiatives.

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There are quite a few measures proposed that should encourage investment in Lithuania, because taxes are paid by those who work, create businesses, and earn that money. Quite a few proposals from the Ministry of Economy and Innovation have been included in the program – regarding competitiveness, reinvested profit, and other measures.