“If we are talking about 3.5 percent. financing of the gross domestic product (GDP – BNS) for defense, it is a fact that additional sources will still be needed in addition to those on which the Seimas has already agreed. It might not be a very quick consensus, maybe it will be a discussion that will take time even after the elections, but I really don’t see any harm in the discussion itself,” I.Šimonytė told Žinių radio on Thursday.
The Prime Minister emphasized that solutions can be found during the discussion that would not discourage people, for example, housing insurance.
“I think there are opportunities to find such solutions, as we managed to do with the first package, which would be minimally harmful or would minimally cause negative consequences for one or another of people’s decisions, for example, housing insurance,” said I.Šimonytė.
She reminded that the submitted tax draft provides a clause for the mandatory civil liability insurance of vehicle owners.
The Prime Minister emphasized that insurance companies in Lithuania do not pay value added tax (VAT) and, unlike abroad, they do not pay any special taxes.
“In most countries of the European Union (insurance companies – BNS) they pay a special tax, like gambling or some kind of lottery, where there is no value added tax and there is another turnover tax that is applied in the countries. Such a tax has never existed in Lithuania”, said I. Šimonytė.
“Now that this discussion has started, that resistance is completely natural and certainly the representatives of that market, the lobbyists, but I am saying here without any negative word, they are trying hard not to discuss that issue,” she added.
At the end of July, the Ministry of Finance prepared a draft of the so-called Security Contribution Law, which provides for a 10% tax on part of the insurance contracts, when the contribution is paid from July 2025. The collected funds would go to the State Defense Fund and would be used for defense purposes. If the Government approves it, the Seimas would finally decide on it.
The adviser to the President, Vaidas Augustinavičius, previously stated that the taxation of part of the insurance contracts proposed by the ministry should not be applied to the main residence. A more socially just model could be considered, he said, such as taxing wealthier residents more.
The head of the Association of Insurers, Andrius Romanovskis, has said that such a contribution would tax responsible people insuring their property and could deter them from taking out insurance.
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2024-09-01 06:56:24
