G.Nausėda would approve an additional increase in the corporate tax rate to 2%. points | Business

“In my opinion, the best way to go is through business income taxation, greater progressivity of income taxation. So that I would advocate an additional percentage of corporate tax. After calculating the need, it can be up to 2 percent”, G. Nausėda told reporters on Wednesday in Vilnius.

Currently, the corporate tax rate is 15 percent.

According to him, the increase in excise taxes proposed by the Freedom Party on Wednesday as one of the possible sources of defense funds is worth considering: “I don’t think we can raise a very significant amount here, but as one of the possible sources, yes.”

At that time, the head of the country called the alternative proposed by both the “free people” and the Ministry of Finance to raise part of the additional funds for defense by redistributing the portion of the personal income tax (PIT) falling to municipalities “theft of municipal money”.

“Nowadays, when we talk regarding the need to reduce the gap between the centers and municipalities, to carry out an active regional policy, such proposals are contradictory or diametrically opposed to these goals,” said G. Nausėda.

Politicians want to increase defense funding to 3 percent. of the gross domestic product, in order to create a division in the army faster, to accept a German brigade in Lithuania by 2027 and to prepare for general conscription.

The government also promises to establish a special fund, where funds would be accumulated for defense once morest higher taxes, to which residents might also donate.

Prime Minister Ingrida Šimonytė previously said that politicians and social partners are getting closer to an agreement on several sources to increase defense funding, including a higher corporate tax rate. She later stated that discussions on increasing this tax by 1.5 or 2 percentage points are possible.

A higher personal income tax rate for the self-employed might also be among the proposals.