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International Internet Magazine. Baltic States news & analytics Friday, 25.06.2021, 04:19

Lithuania’s parliament lifts tax-free income threshold to EUR 400

BC, Vilnius, 25.06.2020.Print version
Lithuania’s Seimas has lifted the tax-free income threshold, which will be applied to all labor income this year, by 50 euros, to 400 euros, informed LETA/BNS.

The respective amendments to the Law on Income Tax, which were initiated by President Gitanas Nauseda, were passed in a vote of 111 to zero, with one abstention.

According to Nauseda, a higher tax-free income threshold would leave lowest-paid workers with higher disposable income.

Previously, the authorities planned to lift the tax-free income threshold to 400 euros early in 2021.

However, the Seimas turned down another initiative put forward by the president, who called to reduce the income tax rate by 5 percentage points until the end of December.

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